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The Smart Grid: Enabling Energy Efficiency and Demand Response
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The Smart Grid: Enabling Energy Efficiency and Demand Response
Clark W. Gellings, P.E.
Library of Congress Cataloging-in-Publication Data
Gellings, Clark W. The smart grid : enabling energy efficiency and demand response / Clark W. Gellings. p. cm. Includes bibliographical references and index. ISBN-10: 0-88173-623-6 (alk. paper) ISBN-10: 0-88173-624-4 (electronic) ISBN-13: 978-1-4398-1574-8 (Taylor & Francis distribution : alk. paper) 1. Electric power distribution--Energy conservation. 2. Electric power-Conservation. 3. Electric utilities--Energy conservation. I. Title. TK3091.G448 2009 621.319--dc22
The smart grid : enabling energy efficiency and demand response / Clark W. Gellings. ©2009 by The Fairmont Press. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher.
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1 2 WHAT IS THE SMART GRID? ............................................................ 1 What is a Smart Grid? .............................................................................. 1 The Smart Grid Enables the ElectriNetSM............................................. 2 Local Energy Networks ........................................................................... 4 Electric Transportation ............................................................................. 5 Low-Carbon Central Generation............................................................ 6 What Should Be the Attributes of the Smart Grid? ............................. 6 Why Do We Need a Smart Grid? ........................................................... 7 Is the Smart Grid a “Green Grid”? ....................................................... 12 Alternative Views of a Smart Grid. ...................................................... 14 Capgemini’s Vision (www.capgemini.com/energy ) ................ 14 IBM’s Vision (www.ibm.com/iibv) .............................................. 16 IntelliGridSM (www.epri-intelligrid.com).................................... 17 The Modern Grid Strategy (www.netw.doe.gov) ....................... 19 GridWise™ (www.electricdistribution.ctc.com) ......................... 19 General Electric Vision (www.gepower.com) ............................. 19 Distribution Vision 2010 (DV2010) ............................................... 21 UK SuperGen Initiative (www.supergen-networks.org.uk) ..... 21 Hydro Quebec Automation Initiative .......................................... 22 The Galvin Initiative (www.galvinpower.org)............................ 22 Electricite de France (EDF) Power-Strada ................................... 23 European Union Smart Grid (www.smartgrids.eu) ................... 23 ELECTRIC ENERGY EFFICIENCY IN POWER PRODUCTION & DELIVERY ............................................ 27 Introduction............................................................................................. 27 Power Plant Electricity Use ................................................................... 28 Lighting .................................................................................................... 29 Maintenance Issues ......................................................................... 31 Space Conditioning and Domestic Water Heating ............................ 32 Building Infiltration ........................................................................ 35 Motors ...................................................................................................... 37 EPRI Demonstrations ............................................................................. 40 Efficiency in Power Delivery ................................................................ 43 Conservation Voltage Reduction .......................................................... 43 v
........................... 88 Nodes of Innovation ......................................................................................................................................................................................................................................................................................... 93 AC vs..........S............... 87 Advantages of the Distributed Power System & Relevant Nodes of Innovation . 3 4 5 Distribution Transformer Efficiency ...................................................................... 54 Financial Impacts of Energy Efficiency ........................................................ DC Power: An Historical Perspective ............................................................................................ 67 Energy Efficiency Potential in the U..... 93 Transformers transform the power delivery system ....................................................................................................................................................................... 61 What Can Be Accomplished? ......................... 80 Path to the Perfect Power System .................................. 79 Design Criteria ........ 65 IEA Estimates .................................................................... 81 Advantages of the Perfect Device-Level Power System and Relevant Nodes of Innovation .............................. 78 Defining the Perfect Electric Energy Service System ................. 82 Building Integrated Power Systems .............................. 80 Overview of the Perfect Power System Configurations ............................ 60 Reducing Greenhouse Gas Emissions . 46 ELECTRIC END-USE ENERGY EFFICIENCY ............................ 53 Energy Efficiency ......................................................................................... 95 vi ............................ 84 Advantages of the Building Integrated Power System & Relevant Nodes of Innovation ......................................... 53 Is Energy Efficiency Cost-Effective? ........... 58 Renewed Interest ................................................................................................................................................................................................................... 65 United Nations Foundation Estimates ... 81 Device–Level Power System .......... 55 A Renewed Mandate .................................. 87 Fully Integrated Power System: The Smart Grid .......................... 88 DC DISTRIBUTION & THE SMART GRID ........................................................................... 56 Drivers of Energy Efficiency ..... 77 The Galvin Vision—A Perfect Power System .......... 84 Distributed Power Systems ..... 71 USING A SMART GRID TO EVOLVE THE PERFECT POWER SYSTEM ..... 53 Defining Electric End-use Energy Efficiency ................................... 55 How Desirable Is Energy Efficiency?........... ....
.................................. 126 Distributed Energy Resources and Storage Development & Integration............. 119 Fast Simulation and Modeling ........................................................................................................ 128 THE SMART GRID –ENABLING DEMAND RESPONSE— THE DYNAMIC ENERGY SYSTEMS CONCEPT ...... 118 Barriers to Achieving This Vision................... 122 Open Communication Architecture for Distributed Energy Resources in Advanced Automation ................................................ 127 Power Market Tools ............................. 113 Introduction.................................................... 125 Automation: The Heart of the IntelliGridSM .............................. 101 Equipment Compatibility .................................................................................................................................................................................................................................. 126 Power Electronics-Based Controllers ....................... 109 THE INTELLIGRIDSM ARCHITECTURE FOR THE SMART GRID ....................................... 114 The IntelliGridSM Today ................................................................................ 105 Your Future Neighborhood ........................................... 128 The Consumer Portal ................................................................ 119 Communication Architecture: The Foundation of the IntelliGridSM ..................................................................................... 98 Powering Equipment and Appliances with DC .......................... 116 Increasing System Capacity ............................ 132 Smart Distributed Energy Resources ........... 116 Relieving Bottlenecks .................................................................... 116 Visualizing the Power System in Real Time .............. 116 Enabling a Self-Healing Grid .......................................... 109 Potential Future Work and Research ............................ 124 Enabling Technologies .......... 132 Advanced Whole-Building Control Systems ..... 117 A Smart Grid Vision Based on the IntelliGridSM Architecture .. 131 Smart Energy Efficient End-Use Devices ..................................................................................... 6 7 Centralization dictates AC instead of DC .......................... 133 vii ......... 101 Data Centers and Information Technology (IT) Loads ....................................... 113 Launching the IntelliGridSM ........................ 117 Enabling (Enhanced) Connectivity to Consumers ........ 96 Benefits and Drivers of DC Power Delivery Systems ........... ............................................................................................................................................... 127 Technology Innovation in Electricity Use ..................
................................................................................ 143 Distributed Energy Resources ................................... 138 Demand Response.................................. 162 Simplify Building Systems ........................................................................................................................................... 162 What Are the Generic Features of the EnergyPortSM? ........................... 142 Current Limitations and Scope for Dynamic Energy Management.... 164 Decentralized Operation ................................................ 151 Key Features of a Dynamic Energy Management System.............................................................................. 155 What is the EnergyPortSM? .............................................................................. 165 Appliances That Talk to Each Other .................................................................. 166 Communication .................................................. 134 Demand-side Management....................... 167 Entertainment .......................... 169 Network Communications Management ......................................................................................................................... 163 Safety . 164 Consumer Interface ......................... 150 Key Characteristics of Advanced Whole-building Control Systems ............................................... 163 Reliability............................ 166 Safety ................. 174 National Level.......... 174 Multi-National Level ...................... 175 viii ................................................................................... 169 Remote Consumer-Site Vicinity Monitoring ..................................................................................... 133 Energy Management Today ............................................... 141 Role of Technology in Demand Response ...... 144 How is Dynamic Energy Management Different?.............................................................. 146 Overview of a Dynamic Energy Management System Operation From an Integrated Perspective .................................. 148 Key Characteristics of Smart Energy-Efficient End-use Devices and Distributed Energy Resources (Together Referred to as “Smart Devices”)...................................................................................................................................................................................................................................... 8 9 Integrated Communications Architecture ............................................ 171 Policies and Programs in Action .................................. 151 THE ENERGYPORTSM AS PART OF THE SMART GRID .......... 169 Markets .......................... 169 POLICIES & PROGRAMS TO ENCOURAGE END-USE ENERGY EFFICIENCY ......................................................................
...... 185 MARKET IMPLEMENTATION ........................... 216 Management Concerns ........................ 227 Variable Refrigerant Flow Air Conditionings .................. 230 ix ......... 229 Light-Emitting Diode (LED) Street and Area Lighting...... 210 Program Logistics... 182 City Level............................................................................................................... 194 Factors Influencing Customer Acceptance and Response ... 226 Ductless Residential Heat Pumps and Air Conditioners .................................. 221 Existing Technologies................................................ 205 Direct Incentives ............................................................................ 224 Domestic Water Heating ............................................................................ 189 The Market Planning Framework ............ 195 Customer Satisfaction ................................... 199 Trade Ally Cooperation .................................. 202 Alternative Pricing ........................ 228 Hyper-Efficient Residential Appliances ...................................................................................................................................... 229 Data Center Energy Efficiency ........ 210 Program Management .............................................................................................................. 206 Program Planning..................................................................................................................................................................................................................... 183 Corporate Level ......................................................... 201 Advertising and Promotion .......... 226 Hyper-efficient Appliances ................................................................... 184 Energy Efficiency Challenges in the Middle East and North Africa .................................................................................................................... 213 Monitoring Program Validity ...................................................................... 217 EFFICIENT ELECTRIC END-USE TECHNOLOGY ALTERNATIVES.................. 215 Data and Information Requirements ............................................................................................................................................................................ 221 Lighting................................................................................. 10 11 State Level ............................................................................................................................ 227 Heat Pump Water Heating ..................................................................................................................... 198 Direct Customer Contact ................................................ 211 The Implementation Process ........................................................ 212 Monitoring and Evaluation ............................................... 224 Indoor Air Quality................... 230 Industrial.......................................................................... 222 Space Conditioning ...........................................
............................. 250 The Utility Planning Process ............................................................................................................................................................. 261 System Context ....... 240 Electric Arc Furnaces ................................................................................................................................................................... 245 What is Demand-side Planning?....................... 259 General Information Requirements ........................................................................................ 235 Thermal Energy Storage ........................................................ 249 Issues Critical to the Demand-side ............... 258 DEMAND-SIDE EVALUATION ... 262 x ................................................................. 248 Selecting Alternatives .................................... 247 Why Consider the Demand Side? ................................................ 238 Residential Sector ......................... 254 How Do I Select Those Alternatives That Are Most Beneficial? .......... 239 Industrial Sector .............................. 233 Process Heating ................................................................................................. 230 Motors ..................................... 231 Drive Train ................................. 240 Efficiency Advantages of Electric Process Heat Systems .............. 245 Introduction............................................................................................... 250 Demand Response & Energy Efficiency ........................................................... 259 Levels of Analysis .......................... 240 Infrared Process Heat ...................................................................................................................... 240 Dielectric Process Heat ................................................................................................... 234 Cogeneration .......... 12 13 Motors and Drives...................................... 250 How Can Demand-side Activities Help Achieve Its Objective? .............................................. 254 What Type of Demand-side Activities Should Providers Pursue?..................................................................................................................................................... 233 Equipment Retrofit and Replacement ................................................ 236 Industrial Energy Management Programs ...................................................................................................................................... 239 Induction Process Heating ................. 238 Commercial Sector .......................................... 237 Manufacturing Processes ...... 241 Merits of Electrotechnologies Beyond Energy Efficiency ................... 231 Electrical Supply.................................................................................. 242 DEMAND-SIDE PLANNING ......................................... 237 Electrotechnologies ..........................................................................................
.............................. 262 Data Requirements ...................................................... 276 Program Logistics..................... 273 What is the Best Way to Implement Selected Demand-side Programs? ............................................ 282 Monitoring Program Validity ................ Transferability ....................... 282 Data and Information Requirements ........................................................................................ 267 How Can Adoption of Demand-side Alternatives Be Forecasted and Promoted? .................................................................................................................................................................... 281 Issues in Program Monitoring and Evaluation ................................................................. 283 Management Concerns ......................................................................................................................................... 272 Customer Adoption Techniques......................... 276 The Implementation Process............................. 275 Program Implementation Issues ................................................................................... 270 Consumer & Market Research ................... 264 What Changes in the Load Shape Can Be Expected By Implementing Demand-side Alternatives? .............................................................................. 280 Monitoring and Evaluation Approaches .......... 275 Program Planning .......................... 286 Appendix—ADDITIONAL RESOURCES ....................................... 263 Cost/Benefit Analysis .................... 265 Program Interaction .................................................................................................................................................................................... 268 Estimating Future Market Demand & Customer Participation Rates .................... 263 Non-monetary Benefits & Costs ........................................................................................... 279 How Should Monitoring and Evaluation of the Performance of Demand-side Programs and Activities Be Best Achieved? ............................................................................... 275 Program Management ...................................................... 284 How Do I Get Started in Addressing Demand-side Planning Issues as They Relate to My Utility? ............ 289 Index .......... 284 Monitoring and Evaluation Programs.............................................................................. 297 xi ............................................................ 267 Dynamic Systems .................
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Department of Energy Demand Response Distribution System Efficiency Demand-side Management Electricity Innovation Institute Electricite de France Energy Management Control System Energy Management System Electric Power Research Institute TAC Transmission Systems Forced Draft Federal Energy Regulatory Commission Fast Simulation and Modeling General Electric Gas Turbine Gate Turn-Off Thyrister Pulse-width Modulated High-Level Architecture Horsepower High-Pressure Sodium xiii .Definitions ADA ANSI ASDs CCS CEIDS CFL CH4 CHP CO2 CPP CVR DA DC DER DG DOE DR DSE DSM E2I EDF EMCS EMS EPRI FAC FD FERC FSM GE GT GTO-PWM HLA HP HPS Advanced Distribution Automation American National Standards Institute Adjustable Speed Drives Carbon Capture and Storage The Consortium for Electric Infrastructure to Support a Digital Society Compact Fluorescent Lamps Methane Combined Heat and Power Carbon Dioxide Critical Peak Period Conservation Voltage Reduction Distribution Automation Direct Current Distributed Energy Resources Distributed Generation U.S.
Ventilation and Air Conditioning Induced Draft International Energy Agency Integrated Energy and Communications Architecture Institute of Electrical and Electronics Engineers Intelligent Network Agents Internet Protocol Independent System Operators Information Technology Intelligent Universal Transformer Kilohertz Kilowatt hour Load Commutated Inverter Light-Emitting Diode Light-Emitting Diode Street and Area Lighting Modern Grid Strategy Metal Halide Megahertz Megawatt Megawatt Hour National Ambient Air Quality Standards National Electrical Manufacturers Association North American Electric Reliability Council National Energy Technology Laboratory New Source Review Personal Digital Assistants Plug-In Hybrid Electric Vehicles Phaser Measurement Units Photovoltaics Radio Frequency Return on Investment Regional Transmission Organizations Self-Healing Grid Switched Mode Power Supply Security Quality Reliability and Availability Thermal Energy Storage Transmission Control Protocol/Internet Protocol xiv . HPWHs HRSG HVAC ID IEA IECSA IEEE INAs IP ISOs IT IUT KHz kWh LCI LED LEDSAL MGS MH MHz MW MWh NAAQS NEMA NERC NETL NSR PDAs PHEVs PMUs PV RF ROI RTOs SHG SMPS SQRA TES TCP/IP Heat Pump Water Heaters Heat Recovery Steam Generator Heating.
TOU TWh UML UPS V VFD BRF WAMs WEO Time of Use Terawatt Hour Unified Modeling Language Uninterruptible Power Supply Voltage Variable Frequency Drive Variable Refrigerant Flow Wide Area Monitoring System World Energy Outlook xv .
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efficiency. Actually. with only modest use of sensors. minimal electronic communication and almost no electronic control. the industry initiated the use of computers to monitor and offer some control of the power system. almost all other industries in the western world have modernized themselves with the use of sensors. power system area operators can. quality of products and services. communications and computational ability. 1 . In brief. exercising control and through feedback. towers. This. coupled with a modest use of sensors. and environmental performance. at best. distribution. 20 seconds is still not real time when one considers that the electromagnetic pulse moves at nearly the speed of light. cables. has increased over time. a smart grid is the use of sensors. communications. Sometime in the 1960s. there has been enormous improvements in productivity. For a power system. see the condition of the power system with a 20-second delay. and contain cost.Chapter 1 What is the Smart Grid? WHAT IS A SMART GRID? The electric power system delivery has often been cited as the greatest and most complex machine ever built. applying intelligence. Industry suppliers refer to this as “real time. It consists of wires. transformers and circuit breakers—all bolted together in some fashion. communicating. mitigate environmental impact. In the last 25 years. manage assets. distributed resources and consumer end uses toward goals which ensure reliability and optimize or minimize the use of energy. It still remains less than ideal—for example. computational ability and control in some form to enhance the overall functionality of the electric power delivery system. this permits several functions which allow optimization—in combination—of the use of bulk generation and storage. A dumb system becomes smart by sensing. transmission. continually adjusting. For these other industries.” However. the electric power delivery system is almost entirely a mechanical system.
information reporting and notification. Realizing the ElectriNet SM depends on developing the IntelliGridSM (see Chapter 6) communications architecture to enable connectivity between each element of the ElectriNetSM with requirements for developing agent-based software systems. complex. the ElectriNetSM. The ElectriNetSM recognizes the evolution of the power system into a highly interconnected. and electronic commerce applications. the Internet. financial. as well as enable the ability to manage competitive transactions resulting from competitive service offerings that emerge in the restructured utility environment. which can facilitate the informational. and bidding capacity into ancillary service markets. Action Framework—Four Evolving Infrastructures . telecommunications. local energy networks and electric transportation (see Figure 1). At the same time. will provide for seamless integration/interoperability of the many disparate systems and components. Examples of competitive transactions include settlements for demand response participation. and physical transactions between the several members of the electricity value chain that supplement or replaces the vertically integrated utility. the move towards more competitive electricity markets requires a much more sophisticated infrastructure for supporting myriad informational. This next-generation electrical infrastructure.2 The Smart Grid: Enabling Energy Efficiency and Demand Response THE SMART GRID ENABLES THE ELECTRINETSM The ElectriNetSM is the guiding concept for marrying the smart grid with low-carbon central generation. energy trading. financial. and physical transactions necessary to assure Figure 1-1. and interactive network of power systems.
the consumption or demand side of electricity deserves special attention. continues when the energy is delivered through the highvoltage transmission networks. This perspective is based on combining distributed computing technologies such as web services. The ElectriNetSM provides a new perspective on how to manage transactions given the nature of the existing and emerging distributed. Developing an architecture allows future developers to access this framework as a resource or design pattern for developing distributed software applications. In this new energy value chain. Changes in technology and the resulting economics have now disrupted that traditional value chain and stimulated the adoption of .What is the Smart Grid? 3 adequate reliability. continues when the electricity is stepped down to a lower voltage onto medium-voltage distribution networks. and intelligent agents. and other market/system conditions. In addition. and stability of power systems operating in competitive electricity markets. the value chain proceeds as follows: It starts at the fuel/energy source. efficiency. heterogeneous communications and control network. The goals of the architecture are to allow for interoperability and flexibility to facilitate and enable competitive transactions to occur. including analysis and response to electrical grid contingencies. pricing. the architectural requirements will be designed to support multiple operational criteria. proceeds to the power generator. new players. Interoperability can be enabled by the use of open communication protocols. the semantic web. Much of the existing focus has been on the supply side to enable competitive wholesale transactions resulting in trading floors for energy and capacity sales. and finally is delivered to end-use customers for consumption. taking into account the core concepts of interoperability and support for multiple operational criteria (business rules). There are a large number of operational services along this value chain for delivering electricity to customers. The purpose of this architecture is to provide a resource that can serve as a road map to understanding. security. Flexibility can be provided by the specification of user-defined business rules which capture the unique needs of various service offerings. and new regulatory environments that encourage competitive markets. as well as promoting open and non-discriminatory access to the transmission grid. In the case of electricity. A new energy value chain is emerging as a result of new technologies. applying and building next-generation agent-based software systems applied to electricity value chain transactional systems.
A whole class of service offerings which have similar requirements include those related to customer billing. and energy market operators. real-time pricing. Many of these service offerings share similar requirements for integrating disparate systems. while taking into account the specific business and technical requirements of many industry players such as energy users. LOCAL ENERGY NETWORKS The local energy network facilitates the functionality of the ElectriNetSM.g. on-line meter reading.. These distribution resources can take many forms. energy service companies. and sufficiently flexible and adaptable to meet the changing business needs of suppliers and customers. and enabling physical and financial transactions. The architecture is intended to be used to develop software that can supplement the existing power distribution/market network communication infrastructure. highly scalable. bill management. a whole new area of energy services and transactions has sprung up around the demand side of the value chain. Delivering these services will require a communications architecture that is open. the combination allows for the operation of a power . management of customer equipment. and a range of value-added services are emerging (e. transmission companies. DR is an example of an energy service which requires the interaction and integration of multiple-party business systems and physical assets resulting in both physical and financial transactions.4 The Smart Grid: Enabling Energy Efficiency and Demand Response distributed energy resources (DER). distribution companies. because of competition and deregulation. energy audits. Overall. In addition. energy information. One of these new energy services is demand response (DR) which enables load and other DER resources to provide capacity into the bulk power system in response to grid contingencies and market pricing signals. automating business processes. The proposed architecture is designed to enable communication and decision making between distributed system nodes and parties. It could consist of a collection of reusable software agents and associated hardware specifications that will interoperate within the many interfaces and devices on the power system/market infrastructure. The use of software agents allows the ability for communication and cooperation among system nodes. procurement. etc). energy information. but some key examples are distributed generation and storage and plug-in hybrid electric vehicles (PHEVs).
and then integrate local energy networks to the smart grid. secure.4-2 kW of power while charging—about what a dishwasher draws. This could be an industrial facility. plug-in hybrid electric vehicles (PHEVs). To this blend of technologies. or a residential neighborhood. a campus of buildings. the availability of both a controllable load and controllable on-site electrical storage can have a profound impact on the electrical systems. self-correcting and self-healing and is able to sustain failure of individual components without interrupting service. energy sources and a power distribution infrastructure are integrated at the local level.What is the Smart Grid? 5 system that is self-sensing. challenges . Plug-in hybrid electric vehicles represent the most promising approach to introducing the significant use of electricity as transportation fuel. As such. The primary challenges to widespread use of PHEVs. off-peak electricity from the grid—allowing a vehicle to run on the equivalent of 75¢ per gallon or better at today’s electricity price. Localized energy networks can accommodate increasing consumer demands for independence. Local area networks are interconnected with different localized systems to take advantage of power generation and storage through the smart grid enabling complete integration of the power system across wide areas. PHEV development can build on more than a decade of experience with conventional hybrids such as the Toyota Prius and Ford Escape. convenience. PHEVs add the ability to charge the battery using low-cost. environmentally friendly service and cost control. flexibility and intelligence for optimization of energy use and energy management at the local level. And PHEVs draw only about 1. As PHEVs begin to proliferate. a commercial building. it is able to meet consumer needs at a reasonable cost with minimal resource utilization and minimal environmental impact and. ELECTRIC TRANSPORTATION The next building block of the ElectriNetSM is electric transportation—particularly electric vehicles and. enhance the quality of life and improve economic productivity Local energy networks increase the independence. appearance. in the near-term. which use a battery and electric motor to augment the power of an internal combustion engine. Local energy networks. therefore.
Minimal environmental impact of electricity production and delivery. Successful implementation of the ElectriNetSM assumes successful achievement of performance and deployment targets associated with several advanced technologies as a basis for estimating CO2 emissions reduction potential. The complete integration of the power system across wide areas must include the availability of central generation and large-scale central storage. WHAT SHOULD BE THE ATTRIBUTES OF THE SMART GRID? In order for the smart grid to enable the ElectriNetSM. solar-photovoltaics (PV) and biomass. continued use of the existing nuclear fleet through life extension. • . Those related to central generation must include an expanded use of renewable energy. LOW-CARBON CENTRAL GENERATION An essential element of the ElectriNetSM is low-carbon central generation. solar-thermal. include specification of the local energy network and development of a mass market to lower battery costs. particularly wind. Optimal use of bulk power generation and storage in combination with distributed resources and controllable/dispatchable consumer loads to assure lowest cost. advanced coal power plants operating at substantially higher temperatures and pressures. the following attributes would need to be addressed: • • Absolute reliability of supply. as well as deployment of advanced light water nuclear reactors.6 The Smart Grid: Enabling Energy Efficiency and Demand Response that will require direct utility involvement to overcome. The ElectriNetSM facilitates the inclusion of multiple centralized generation sources linked through high-voltage networks. and wide-scale use of CO2 capture and storage after 2020. The design implies full flexibility to transport power over long distances to optimize generation resources and the ability to deliver the power to load centers in the most efficient manner possible coupled with the strong backbone.
According to a North American Electric Reliability Council (NERC) reliability assessment. demand is expected to grow . both traditional utilities and independent power producers.S. This can stress the transmission system far beyond the limits for which it was designed and built.S. commercial. hurricanes. These constraints can be resolved but they require investment and innovation in the use of power delivery technologies. delivery system (transmission and distribution) is largely based upon technology developed in the 1940s and 1950s and installed over the next 30 to 50 years. Under deregulation of wholesale power transactions. maintenance and performance issues that contributed to the August 14.What is the Smart Grid? • 7 Reduction in electricity used in the generation of electricity and an increase in the efficiency of the power delivery system and in the efficiency and effectiveness of end uses. and industrial consumers. were encouraged to transfer electricity outside of the original service areas to respond to market needs and opportunities. Power plants were located so as to serve the utility’s local residential. The U. earthquakes.). yet only 15% of new transmission capacity was added. Monitoring of all critical components of the power system to enable automated maintenance and outage prevention. etc. • • • WHY DO WE NEED A SMART GRID? The nation’s power delivery system is being stressed in new ways for which it was not designed. while there may have been specific operational. tsunamis. In the period from 1988 to 1998. Assuring optimal power quality for all consumers who require it. electricity generators. For example. a number of improvements to the system could minimize the potential threat and severity of any future outages. electricity demand in the U. grew by 30%.g. Resiliency of supply and delivery from physical and cyber attacks and major natural phenomena (e. 2003 outage. The original design of the power delivery system renders some areas of the United States particularly vulnerable. For example.. the North American power delivery system was laid out in cohesive local electrical zones.
the use of advanced software for state estimation (modeling 2. Many of these technologies are ready for wide deployment now. This has resulted in significantly increased transmission congestion—effectively.8 The Smart Grid: Enabling Energy Efficiency and Demand Response 20% during the 10 years from 2002 to 2011 while less than 5% in new transmission capacity is planned. the number of wholesale transactions each day has grown by roughly 400% since 1998. key element of the grid must be “observable”—either through direct monitoring or computerized estimation. Expanding transmission and applying new technologies will require a great deal of cooperation between government and industry. bottlenecks in the flow of wholesale power—which increases the level of stress on the system. Specifically. Meanwhile. generators will be tempted to build new plants where local prices are high—and then oppose construction of new power lines that could bring in cheaper power. A lot has been done to mitigate the potential for blackouts—particularly in the effort to provide new technologies that can help make electricity more reliable. Build new generation and transmission facilities in coordination with each other. Implement technologies necessary for wide-area grid operations. In addition. on a regional basis. Substantial new transmission must be built to add these resources to the nation’s generation portfolio. In addition. large wind and solar resources are located far from population centers. 1. . six steps should be taken to accelerate the formation of a smart grid and to enable the expansion of renewable generation and to reduce the risk of having regional blackouts—which will surely come if these steps aren’t taken. For an RTO or ISO to operate a large regional power system. in part. the nation is increasingly embracing the use of renewable power generation. while others are only now entering demonstrations. Without such coordination. However. on the use of power-sensitive equipment. Wide-area monitoring systems (WAMS) employing phaser measurement units (PMUs) are now being applied to provide direct measurements. Regional transmission organizations (RTOs) and independent system operators (ISOs) should be given the responsibility and necessary authority to carry out a program of coordinated expansion planning. in order to sustain an increasingly high-tech economy which is based.
as should the type of operations planning that sets up such conditions. as needed. Information systems and procedures need to be updated. Otherwise. 6. System operators also need to be trained more thoroughly in grid restoration and “black starts” (bootstrapping recovery after a blackout). Problems over time provide a warning that this standard will be tarnished unless steps are taken to ensure even higher levels of reliability for the future. Specifically. Improve emergency operations. Consumers also need to be provided with ways to curb demand automatically.What is the Smart Grid? 9 the probable status of grid elements that aren’t monitored directly) should become mandatory. Grid operations must be coordinated more closely with power market operations. using advanced technologies. 4. in order not only to minimize the risk of more blackouts but also prevent the type of price spikes experienced already in areas like California. The common practice of operating power systems under conditions (so-called “N-l contingencies”) that security assessment software indicates might lead to blackouts should be reconsidered. The whole question of how to set protective relays in order to prevent the “cascade” of an outage across a whole region also needs to be reexamined. especially during an emergency. Complex data communications underlies power system operations. the costs associated with poor system reliability could significantly dam- . 3. The electric power industry has long presented to the world a gold standard of reliability in power system operations. which can help operators mitigate problems when they arise. Some areas have already employed more constrained operation. Many of these systems need upgrading. 5. and the procedures for their use should also be fundamentally revised. prices must be determined according to market rules established to ensure that power flows are handled more cost-efficiently and transmission congestion is avoided. such as New York State. in return for price breaks. So should the expanded use of security assessment software. Clear lines of authority are needed to handle emergencies effectively.
These sensors would be integrated with a real-time communications system through an integrated electric and communications system architecture. this functionality includes increasing power flow. . The development and deployment of a more robust. This conceptual design of the smart grid addresses five functionalities which should be part of the power system of tomorrow. The overall system is being called a smart grid. the smart grid is an advanced system that will increase the productivity resulting from the use of electricity. In a digital age when consumers demand higher quality. This would include building more transmission circuits.S. This functionality would also require technology deployment to manage fault currents. upgrading control centers. and updating protection schemes and relays. more reliable power and long-distance power trades place unprecedented demands on the system. and at the same time. The data would need to be managed through a fast simulation and modeling computational ability and presented in a visual form in order for system operators to respond and administer. These functionalities are as follows: Visualizing the Power System in Real Time This attribute would deploy advanced sensors more broadly throughout the system on all critical components. functional and resilient power delivery system is needed. to eliminate many/most of the bottlenecks that currently limit a truly functional wholesale market and to assure system stability. In addition to increasing capacity as described above. adequate investment in the nation’s electric infrastructure is critical. Relieving Bottlenecks This functionality allows the U. Increasing System Capacity This functionality embodies a generally straight-forward effort to build or reinforce capacity particularly in the high-voltage system. providing and allowing the operation of the electrical system on a dynamic basis. making improvements on data infrastructure. bringing substations and lines up to NERC N-l (or higher) criteria. create the backbone application of new technologies far into the future.10 The Smart Grid: Enabling Energy Efficiency and Demand Response age the world economy as a whole. Under this definition. enhanced voltage support.
home security or appliance monitoring). Availability of a wide range of “always-on. one which involves services related to electricity (e. implementation. including low-cost. Minimized environmental and societal impact by improving use of the existing infrastructure.g. that stimulate the economy and offer consumers greater control over energy usage and expenses. and stimulating the development. high-value energy services. implementation.g.” Extremely reliable delivery of the high-quality. promoting development. and use of clean distributed energy resources and efficient combined heat and power technologies. • • • . To enable this functionality will require wide-scale deployment of power electronic devices such as power electronic circuit breakers and flexible AC transmission technologies (FACTS).. and a power delivery infrastructure that can be quickly restored in the event of attack or a disruption: a “selfhealing grid. data services). and use of energy efficient equipment and systems. then it is possible to consider controlling the system in real time.What is the Smart Grid? 11 Enabling a Self-healing System Once the functionalities discussed above are in place... Enabling (Enhanced) Connectivity to Consumers The functionalities described above assume the integration of a communications system throughout much of the power system enhancing connectivity to the ultimate consumers.g. This enhancement creates three new areas of functionality: one which relates directly to electricity services (e. These functionalities will facilitate achievement of the following goals: • Physical and information assets that are protected from man-made and natural threats. price-smart” electricity-related consumer and business services. added billing information or real-time pricing). “digital-grade” power needed by a growing number of critical electricity end-uses. and the third involves what are more generally thought of as communications services (e. These technologies will then provide for integration with an advanced control architecture to enable a self-healing system.
The emissions reduction impact of a smart grid. utilities and the nation as a whole in numerous ways. A smart grid has the potential to benefit the environment. and decreased electricity intensity (ratio of electricity use to gross domestic product. Table 1-1 summarizes the energy savings potentials and corresponding values of avoided CO2 emissions for each of the seven selected . utilities are struggling to address a new societal and existing or possible future regulatory obligation—mitigating emissions of greenhouse gases. plus other dividends. based on these seven mechanisms. As part of EPRI’s Energy Efficiency Initiative. a first-order quantification of energy savings and carbon-dioxide (CO2) emissions reduction impacts of a smart grid infrastructure was developed. (3) enhanced demand response and load control.12 • The Smart Grid: Enabling Energy Efficiency and Demand Response Improved productivity growth rates. principally carbon dioxide (CO2). such as a reduction in losses in electricity used in electricity generation and reduced losses by improved area voltage control and other T&D system improvements. First-order estimates of energy savings and CO2 emission reduction impacts were quantified for five applications enabled by a smart grid: (1) continuous commissioning for commercial buildings. increased economic growth rates. IS THE SMART GRID A “GREEN GRID?” Today. In addition. first-order estimates of CO2 emissions reductions impacts were quantified for two mechanisms not tied to energy savings: (1) facilitation of expanded integration of intermittent renewable resources and (2) facilitation of plug-in hybrid electric vehicle (PHEV) market penetration. The benefits include the mechanisms for enhanced reliability and power quality as well as energy savings and carbon emission reductions discussed in this book. consumers. (4) direct feedback on energy usage. There are other smart grid improvements which were not part of this analysis. as summarized in Figure 1-2. in an effort to curb global climate change and its potentially deleterious implications for mankind. (2) distribution voltage control. GDP). and (5) enhanced energy efficiency program measurement and verification capabilities. is estimated as 60 to 211 million metric tons of CO2 per year in 2030.
What is the Smart Grid? 13 Figure 1-2. “The Green Grid. Summary of Potential Smart Grid Benefits (Source: EPRI Report 1016905. mechanisms in the target year of 2030. 2002). All of the mechanisms combined have the potential to yield energy savings of 56-203 billion kWh and to reduce annual carbon emissions by 60-211 million metric tons (Tg) CO2.” June 2008).S. smart grid is equivalent to converting 14 to 50 million cars into zero-emission vehicles each year. or ~ 4.000 miles per year.* *Based on an average mid-size sized car driven 12. Average emissions from Climate Change: Measuring the Carbon Intensity of Sales and Profits.” Figure 5: Average CO2 Emissions Rates by Vehicle Type.25 tons CO2 per car. ~ 8. On this basis. Low-end and high-end values are included to show the ranges of savings. the environmental value of a U.513 lbs CO2 per car. .
ALTERNATIVE VIEWS OF A SMART GRID It is no surprise that there is no one definition of the smart grid.000 of them over 10 years old.com/energy) Capgemini believes that in order to make meaningful progress toward addressing the current grid challenges and delivering on the future grid characteristics. many of these are not very smart and are limited in scope. Smart Grid Energy Savings and Avoided CO2 Emissions Summary (2030) ((Source: EPRI Report 1016905. there are a variety of architectures.” June 2008). Some examples of smart grid visions are as follows: Capgemini’s Vision (www. Figure 1-3 details the summary of energy-savings and carbon-reduction mechanisms enabled by a smart grid. Such a complex machine with so many technology options at hand to improve its functionality is bound to facilitate a variety of broad definitions. utilities should focus on four main activities: . Unfortunately.14 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 1-1. More than 7.000 pilots of some kind are underway today with nearly 1. As a result. technologies and configurations already proposed or under formation for what can be described as smart grids.capgemini. “The Green Grid.
2008) 15 .What is the Smart Grid? Figure 1-3. Summary of Energy-Savings and Carbon-Reduction Mechanisms Enabled by a Smart Grid (EPRI 1016905.
detection of energized downed lines. 3. Monitor/manage/act: In the operational world. Analysis/forecasting: The data that is gathered should be analyzed—for operational and business purposes.com/iibv) IBM’s vision is taken from the consumer’s perspective and is based on a survey of 1. and regulatory reporting. The Smart Grid: Enabling Energy Efficiency and Demand Response Gather data: Data should be collected from many sources on the grid. Capgemini believes that these activities fall into both real-time and non-real-time categories as follows: “Real-time functions include operational and monitoring activities like load balancing. IBM believes that it reveals major changes that are underway including a more heterogeneous consumer base. distributed generation. strategic planning. IBM believes that the smart grid will be manifested by a steady progression toward a “Participatory Network. Rebuilding the grid to support bi-directional power flow and transfer of power from substation to substation: This is to enable the information that is collected and analyzed to be acted on. data that comes from the grid hardware will trigger a predefined process that will inform. log or take action. and high impedance faults and faults in underground cables.” a technology ecosystem comprising a wide variety of intelligent network-connected devices. and a stark departure from a decades-old value chain. maximization of customer satisfaction. evolving industry models. and consumer energy management tools.16 1. .ibm.900 energy consumers and nearly 100 industry executives across the globe. Non-real-time functions include the integration of existing and new utility databases so operational data can be fused with financial and other data to support asset utilization maximization and life cycle management. 4. IBM’s vision believes this includes: • Preparing for an environment in which customers are more active participants. 2.” IBM’s Vision (www.
manufactures and representatives of the public sector. IBM believes that utilities will deploy advanced energy technologies such as smart metering. computing and electronics industries is influencing a similar change in the power industry. more cost-effective computing and open standards have become more prevalent. They fund and manage research and development (R&D) dedicated to implementing the concepts of the IntelliGridSM. Technology costs have generally decreased as lower-cost communications. The . The objective: The convergence of greater consumer choice and rapid advances in the communications. clean generating technologies. They believe that these technologies respond to the following interests: • The combination of energy price increases and consumers’ increased sense of responsibility for the impact of their energy usage on the environment.epri-intelligrid. • • • IBM sees smart meters.What is the Smart Grid? • 17 Capitalizing on new sources of real-time customer and operational information. The frequency and extent of blackouts are driving consumers. politicians and regulators alike to demand assessment and upgrade of the industry’s aging network infrastructure. and distributed generation driving the most industry changes. Better understanding and serving an increasingly heterogeneous customer base. (See Chapter 6 for a more complete description. in the near term. and deciding which role(s) to play in the industry’s evolving value chain. IntelliGridSM (www. network automation and analytics. from a technological perspective.com) A consortium was created by EPRI to help the energy industry pave the way to IntelliGridSM—the architecture of the smart grid of the future. sensors and distributed generation.) Partners are utilities. Climate change concerns have invigorated research and capacity investments in small. • To make these improvements.
Smart Grid Concept. . EPRI Illustration (Source: EPRI IntelliGridSM Program).18 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 1-4.
GridWise™ (www.doe. MGS also supports demonstrations of systems of key technologies that can serve as the foundation for an integrated. Department of Energy (DOE) National Energy Technology Laboratory (NETL) is the manager of the Modern Grid Strategy (MGS). Department of Energy Office of Electricity Delivery & Energy Reliability (OE).electricdistribution.ctc. both within the U. researchers and other stakeholders to form partnerships and overcome barriers. vendors. and associated standards are used throughout the electric grid to provide value and choices to electricity consumers. national vision among grid stakeholders. The Modern Grid Strategy (www. which is leading a national effort to help modernize and expand America’s electric delivery system to ensure economic and national security. intelligence. communication techniques. DOE’s Electric Distribution Program addresses the critical technology area—distributed sensors. empowered by sensors. control and information technologies to enable GridWiseTM operations of all distribution systems and components for interoperability and seamless integration. smart controls. DOE’s Electric Distribution Program operates the Electric Distribution Transformation (EDT) Program and the GridWiseFM Initiative.gepower.S. MGS is working on a framework that enables utilities. communication.com) General Electric (GE) sees the smart grid “as a family of network control systems and asset-management tools. modern power grid. The term GridWiseTM denotes the operating principle of a modernized electric infrastructure framework where open but secure system architecture. and distributed energy resources—identified in the National Electric Delivery Technologies Roadmap. The MGS is fostering the development of a common. through development and use of advanced sensor. . consumers.S. which defines technology pathways to achieving the Grid 2030 Vision.com) The Electric Distribution Program of DOE supports distribution grid modernization.gov) The U.netl.What is the Smart Grid? 19 growing knowledge-based economy requires a digital power delivery system that links information technology with energy delivery. General Electric Vision (www.
regulators. and focuses resources on improving service. calls can be resolved faster. easing systems integration and support. Accurate. and businesses. For operations managers—GE anticipates a reduction in the frequency and impact of outages with improved real-time knowledge of grid status.” They envision “A grid that’s smarter for all of us” which could experience improvements for utilities. making systems more responsive to customers. control costs and strengthen reliability. Demand response that really knows demand and optimizes response. Smart homes that make savings practical and ease facets of everyday life. Some major elements GE believes will be included are: • • • Distributed generation working seamlessly with current assets. Armed with answers. It’s what the smart grid enables that makes the difference. . queue times and staffing levels. allowing delivery of accurate information and a reduction of callbacks. For customer service (call center) functions—Calls can be anticipated when an outage has occurred. For maintenance and engineering professionals- GE believes more can be done with less.20 The Smart Grid: Enabling Energy Efficiency and Demand Response communication pathways and information tools. It also allows for a more timely response to outages. speeding power restoration. instead of simply maintaining it. • • • • GE believes that the smart grid doesn’t look all that different from today’s grid—on the surface. real-time and actionable knowledge of grid status enables a shift from time-based to needbased maintenance. • For utility executives—GE believes the potential for dramatic energy productivity gains could improve service. For chief information technology officers—GE sees the smart grid as based on open-standard software and communication protocols.
The DV2010 projects include advanced feeder automation. UK SuperGen Initiative (www. primary network reconfiguration. there are engineering problems created by embedding renewable energy sources into a distribution network. First. Each work package contains a mixture of engineering. It is a collaboration of six utilities started by WeEnergies to conduct research and development to advance technology for the distribution industry to achieve major reliability improvements. In this context. medium term is 2010 to 2020 and long term is circa 2020 to 2050. Several new technologies are being deployed in DV2010 including the use of smart devices to enable enhanced protection.org. and second. loss reduction and asset optimization. accelerated protection and demonstration of a high-reliability network.supergen-networks.uk) The consortium faces two broad challenges over two timescales. economic and social acceptability aspects. These problems need to be solved for the medium-term UK government targets for renewable energy and for the long-term trans-national aspirations for sustainable energy use and climate change. • • • • • WP1: System-Wide Reliability and Security WP2: Decentralized Operation and control WP3: Demand-side Participation WP4: Micro-Grids WP5: Foresight . and a distribution automation system controller incorporating dynamic voltage control. so you need less and lose less. Upgraded network operations Enhanced power quality and security Efficiency gains. Seven work packages (WP) have been designed to tackle specific issues. 21 Distribution Vision 2010 (DV2010) DV2010 focuses on distribution reliability improvement. the use of a local automation controller.What is the Smart Grid? • • • • Plug-in vehicles that give back to the grid. there is a need to develop a market and regulatory environment that creates the right commercial drivers to encourage sustainable energy generation and use.
These innovation opportunities begin with the consumer. a consumer-focused electric energy system that never fails. It assumes that some of the gains of the advanced distribution system designs can be measured. This initiative identified the most important asset in resolving the growing electricity cost/quality dilemma and its negative reliability. under all conditions.galvinpower. and increase customer satisfaction. They include the seamless convergence of electricity and telecommunications service.22 • • The Smart Grid: Enabling Energy Efficiency and Demand Response WP6: System Evolution WP7: Outreach Hydro Quebec Automation Initiative Hydro Quebec’s Automation Initiative is based on what they refer to as “advanced distribution system designs ” and is intended to be implemented in a structured way (activities. combined heat and power (CHP) and renewable energy as essential assets. every consumer’s expectations for service confidence. delivery and use across the broadest possible spectrum of industrial.org) With the inspiration and sponsorship of Robert Galvin (former CEO of Motorola) and his family. and high-power quality microgrids that utilize distributed generation. in so doing. Hydro Quebec believes that utilities and customers must have a common vision of advanced distribution system designs through standards to reach cost reduction. Robert Galvin believes that this will indeed result in the lowest cost system. productivity and value implications as technology-based innovation that disrupts the status-quo. convenience and choice will be met. functionalities. the electric energy system includes all elements in the chain of technologies and processes for electricity production. SAIFI). The absolute quality of this system means that it meets. this initiative. Integration of technologies and functionalities is the key to success by reducing costs. commercial and residential applications. increase reliability (SAIDI. seeks to define and achieve the perfect power system. power electronics that fundamentally increase reliability. technologies) to reduce cost. This focus on the consumer interface also reflects the relatively intractable nature of the highly regulated bulk power infrastructure that . revitalize the electricity enterprise for the 21st century. In the context of this Initiative. This smart modernization of electric energy supply and service would directly empower consumers and. That is. which began in March 2005. controllability and functionality. The Galvin Initiative (www.
Their vision is: . these configurations address. In so doing. • Help the decision-making process in providing strategic highlights. They also provide a variety of new avenues for engagement by entrepreneurial business innovators. electric energy supply and service. in a phased manner.eu) The European Union has initiated a smart grid effort. the fundamental limitations to quality perfection in today’s centralized and highly integrated U. and (4) integrated centralized systems. Electricite de France (EDF) Power-Strada EDF proposes to “invent the smart grid. it has identified a series of technology challenges intended to: • Build a vision for the long-term research program for the EDF group. These configurations should be considered as a complementary series rather than as competing systems. (3) distributed systems. electric power system. which fully engage the nation’s bulk power supply network. which serve a highly mobile digital society. To accomplish this objective. Each candidate configuration reflects a distinct level of electric energy system independence/interconnection from the consumer perspective.What is the Smart Grid? 23 now dominates U. The four generic system configurations identified by this initiative are (1) device-level (portable) systems. European Union Smart Grid (www.S. Refer to Chapter 4 for a more complete description of the Galvin Electricity Initiative. which extend the focus to local independent microgrids.smartgrids. • Offer a better visibility and understanding of their activities.” It defines it as integrating distributed energy resources with dispersed intelligence and advanced automation. which focus on modular facilities serving individual consumer premises and end-use devices. (2) building integrated systems.S. • Maintain the right balance between short- and long-term activities. including interconnection with local power distribution systems. This initiative defined a set of four generic electric energy system configurations that have the potential to achieve perfection. together with the corresponding innovation opportunities that are essential to their success.
To reduce the impact of environmental consequences of electricity production and delivery. The European Union is undertaking various activities to overcome barriers to the development of European smart grids.24 • • • • • • • The Smart Grid: Enabling Energy Efficiency and Demand Response To overcome the limits on the development of distributed generation and storage. Several of them are described in the following sections. This must be coupled with the development of a common market model and conditions to be applied to the electricity sector throughout the EU by national governments and regulators. To ensure interoperability and security of supply. To face the increased complexity of power system operation.org) The Dispower Project is an elaboration of strategies and concepts for grid stability and system control in distributed generation (DG) networks. The European Union has initiated a cluster of seven research projects centered primarily on enabling the integration of distributed generation (especially renewables) into the European power system. To engage consumers interest. Assessments of impacts to consumers by s.dispower. members states and national regulators need to define the right incentives scheme applied both to network operators and consumers to promote the implementation of smart grids utilizing available technology and late-stage R&D products and applications. It includes preparation of safety and quality standards in DG networks and investigations on quality improvements and requirements by decentralized inverters and generation systems. Dispower Project (www. The EU should provide directives. energy trading and load management are conducted including development of planning and design tools to ensure reliable and cost-effective integration of DG components in regional and local grids and creation of Internet-based information systems for improved communication. Investigations on . European standardization bodies must define common technical requirements supporting smart grids. To enable demand-side participation. energy management and trading. To provide accessibility for all the users to a liberalized market. They believe that a clear and stable regulatory framework stimulating the development of smart grids is needed.
It includes development and demonstration of control strategies that will ensure the operation and management of microgrids is able to meet the customer requirements and technical constraints (regarding voltage and frequency) and is delivering power in the most efficient.ntua. micro-turbines and CHP emissions will be achieved and CO2 emissions reduced.ece. This involves determination of the economic and environmental benefits of the microgrid operation and proposal of systematic methods and tools to quantify these benefits and to propose appropriate regulatory measures. and ancillary services are part of the analysis. isolation and islanded operation are part of the work scope. they will deploy microgrids on actual distribution feeders operating in Greece.microgrids. MicroGrids Project (www. reliability and economic benefits from their operation.gr) The MicroGrids Project is a study of the design and operation of microgrids so that increased penetration of renewable energies and other micro sources including fuel cells.What is the Smart Grid? 25 contract and tariff issues regarding energy trading and wheeling. control systems. The definition of appropriate protection and grounding policies that will assure safety of operation and capability of fault detection. Objectives include improvement and adaptation of test facilities and performance of experiments for further development of DG components. Finally. it can be concluded that the smart grid may more appropriately be named the . as well as design and planning tools.power. CONCLUSION While no one definition of the smart grid prevails. reliable and economic way. and successful dissemination and implementation of concepts and components for an improved integration of DG technologies in different European electrical network environments. as well as identification of the needs and development of telecommunication infrastructures and communication protocols required to operate such systems (this investigation will include consideration of the possibility of exploiting the power wires as physical links for communication purposes). Portugal and France quantifying via simulation the environmental. The project managers intend to simulate and demonstrate microgrid operation on laboratory models.
Plugging in the Consumer: Innovating Utility Business Models for the Future. some only focus on one element of automation.26 The Smart Grid: Enabling Energy Efficiency and Demand Response “smarter grid.© IBM 2007.” A variety of approaches are presented in this chapter—all of which have a common theme of improving the overall functionality of the power delivery system. EPRI Report 1016905. Some of these improvements advocate incremental change. June 2008. Publication G510-7872-00. . But all collectively envision a system which improves the environment. enhances the value of electricity. and improves the quality of life. References The Green Grid.
In condition monitoring and assessment. A number of power plant operators subscribe to commercial data services which enable comparisons of individual plant performers to a central database. Efficiency advocates are questioning whether investments made within power delivery systems and power plants to reduce electricity demand may be as advantageous as those made in end-use efforts with consumers. practitioners and others interested in energy efficiency are questioning whether the scope of end-use energy efficiency should be broadened to electric uses in power delivery systems and in power plants. theoretical models and comparable plant performance. Power delivery system improvements could include use of efficient transformers and better voltage and reactive power control. sensors and communications are used to monitor plant performance and to correlate that performance to historic data. these two aspects of efficiency are only briefly mentioned in any of the smart grid initiatives currently in play. Most plants have some form of condition monitoring. Each of these are directly related to an informed view of the smart grid. One element of the smart grid that relates to the efficient production of electricity has to do with condition monitoring and assessment. The concept of the expanded use of sensor.Chapter 2 Electric Energy Efficiency in Power Production & Delivery INTRODUCTION As interest in electric energy efficiency increases. A few plant operators have centralized data collection and monitoring. Interestingly. Power plant improvements in electricity consumption could include methods to improve overall efficiency. The objectives are to optimize performance and manage maintenance. communications and 27 . therefore. among others. increasing the heat rate (decreasing Btu input per kWh output) of the power plant.
but there are a number of other uses ranging from lighting to space conditioning and digital devices. a key opportunity. and control. This chapter focuses on the unique aspects of power production and delivery related to efficiency. When less energy is consumed within the plant. heating. communications. and even less in hydro power and wind. The principal use is in powering motors which drive pumps. food service. Both pumps and fans are well suited for adjustable speed drives (ASDs) to regulate air and fluid flow and to operate at optimum efficiency. Both pumps and fans must be regulated with throttling valves and dampers to respond to generator loading and climatic conditions. Again. Again. generating capacity is released to sell to consumers without changing the rating of the . the smart grid concepts are the catalyzing element. Running pumps and fans with adjustable speed drives yields substantial energy savings over regulating fluid or air flow with valves and dampers. However. Pumping and fan applications consume a large portion of on-site energy and are. ventilation. building lighting. through delivery to end use. environmental treatment of waste streams. a truly smart grid will include extending this concept all the way from power production. communications and office equipment). Controlling motor drives and monitoring their condition requires sensors. these are largely enabled by the smart grid. As such. Data are sketchy and limited. Much of that electricity use is in electric motor-driven fans and pumps. the dominance of electricity use is in motors. fans and conveyors. gas and nuclear) is used on-site to enable electricity generation. and select use of electric immersion heating to augment power production. air conditioning.28 The Smart Grid: Enabling Energy Efficiency and Demand Response computational ability is part of the smart grid concept. Each of these provide opportunities to apply cost-effective electric energy-efficient technologies to reduce overall electricity use in power production. biomass. Less is used in combustion turbine power plants. domestic water heating. therefore. POWER PLANT ELECTRICITY USE Electricity is used in power plants in several ways. but a few studies have indicated that typically 5 to 7% of electric energy produced in steam power plants (coal. Other uses include information technology (computers.
the point of contention is around whether these efficiency modifications are considered to be “major” modifications. the cost of power generated is reduced. . turbine or boiler. this is not well defined. automation. On occasion. metal halide and other high-intensity discharge lighting. light quality. In addition. The process is called new source review (NSR) and is required whether the major source or modification is planned for an area where the national ambient air quality standards (NAAQS) are exceeded (nonattainment areas) or an area where air quality is acceptable (attainment and unclassifiable areas). implementing various actions to reduce on-site electricity consumption in power plants is “included” in NSR applications in new plant construction or where plant upgrades are planned. while the boiler house and turbine halls often employ high-pressure sodium. convenience and form factor. At present. The result is that improvements which would have resulted in efficiency improvements and emissions improvements are not aggressively pursued. POWER PLANT LIGHTING Lighting has a high potential for technology improvement to enhance its functionality in power plants. plant owners are reluctant to open the entire plant operations to scrutiny for the sake of the on-site electricity savings. New metal halide systems could substantially improve lighting and reduce energy requirements. many older plants still use mercury or older metal halide lighting systems. Major stationary sources of air pollution and major modifications to major stationary sources are required by the Clean Air Act to obtain an air pollution permit before commencing construction. As such. Potential areas for lighting improvement include energy efficiency. In existing plants where these actions may be considered. As a result. regulatory agencies have considered even “minor” changes in plant configurations to be major modifications. Offices. laboratories and control rooms in power plants largely tend to incorporate higher-efficiency fluorescent lighting. However. Light-emitting diodes (LEDs) are emerging in many places such as in exit signs and indicator panels. longevity. aesthetics. This reduces total energy requirements and corresponding CO2 and other emissions.Electric Energy Efficiency in Power Production & Delivery 29 generator.
. One example of a significant increase in efficiency in power plant offices is illustrated in the transition from T12 (1. day lighting. 34 W lamps) with standard magnetic ballast requires 82 W. *Lighting efficacy is the ratio of light output of the lamp in lumens to the input power in watts. 32 W lamps) with electronic ballast requires only 59 W. considerable effort has been focused on improving lighting efficiency. while a two-lamp F32T8 fixture (i.. the integration of controls is an extension of the smart grid. Efficiency is maximized as the performance of each of these factors is optimized. security and personal preference dictate.5-inch diameter. The overall efficiency of the system depends on the efficacy* of the light source (measured in lumens of light output per watt of input power).e. 70 to 80% of the input energy is still rejected as heat. a fixture with two 1-inch diameter. a fixture with two 1. Historically. or even practically. This transition began to occur in the late 1970s and early 1980s. Again. efficacy is a more meaningful measure of the lamp output than efficiency (which is the ratio of the useful energy delivered to the energy input). .e. Now T8 or even newer T5 electronic ballast systems are the standard for new construction and retrofits. The savings is attributable to the lower wattage lamps as well as the considerably more efficient ballast. The efficiency improvement. Conventional fluorescent lighting systems offer a substantial efficiency improvement over incandescent lamps. however. which is an electricity savings of 28%. and research continues. For example. the effectiveness of the fixture in delivering the generated light to the area it is desired. converting 20 to 30% of electricity into light.5-inch diameter) fluorescent lamps with magnetic ballasts to T8 (1-inch diameter) fluorescent lamps with electronic ballasts. Typical incandescent bulbs produce only 10 to 23 lumens per watt. such as indirect lighting. Next generation T5 (5/8-inch diameter) fluorescent lamps continue to improve lighting efficiency and can replace conventional lamps in certain applications. Much of the artificial lighting in place today is considerably less efficient than theoretically. a two-lamp F34T12 fixture (i. and the ability of the controls (if any) to adjust the light level as parameters such as occupancy. In the lighting industry. possible.30 The Smart Grid: Enabling Energy Efficiency and Demand Response Lighting system efficiency is a function of several factors. Conventional incandescent lamps are a good example of this—roughly 95% of the electricity entering an incandescent lamp is rejected as heat. depending on the fixture is roughly 20 to 40% or even more.
may start to outweigh the maintenance and cost issues that were formerly a barrier.000 hours or more—a six-fold increase in comparison to the fluorescent lamp. convenience.g. Maintenance Issues Developers are continually striving to improve the longevity of lamps.. The change in lumen output is often referred to as lumen maintenance. monitoring and indicator lighting.Electric Energy Efficiency in Power Production & Delivery 31 Increased penetration of high-efficiency lighting systems that combine efficacious light sources with fixtures that effectively direct light where it is desired. however.). a typical fluorescent lamp’s lifetime is 8. aesthetics. light quality. the LED will continue to operate. The illumination output from LEDs slowly diminishes over time. Previously.. there will likely be an increase in the number of applications employing lighting. etc. the benefit of illumination in newer applications (e. Table 2-1 lists the lighting technologies which may be considered for application in power plants so as to reduce energy consumption. form factor.). coupled with automated controls to dim or turn the lighting on and off as needed. for an indefinite amount of time.g. etc. the fewer lumens per watt it produces. Lamp lumen depreciation is a partial factor in determining the maintenance (light loss) factor. Furthermore. Newer technologies improve the lumen maintenance factor. The end of an LED’s useful life occurs when it no longer provides adequate illumination for the task. *Useful life refers to the life the lamp operates at an acceptable light level. Lamps also suffer from creeping old age—the longer the lamp burns. automation.000 hours. efficiency. which is an important step in lighting calculation and design. while LEDs recently launched have a useful life* of 50. coupled with lover energy requirements. albeit at a reduced light level. However. will collectively act to improve overall lighting efficiency. . For example. improved outside plant area lighting. the inconvenience of frequent lamp changes precluded lighting in certain applications. Lighting technologies of particular interest to applications in power plants must exhibit improvements in one or more of the attributes required to meet evolving plant operator needs and expectations (e. longevity. Future lighting technologies may be able to achieve useful life expectancies of four million hours. with greater life expectancies in lamps.
pumps and emerging devices such as microwave water heaters.32 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 2-1. Electricity is used in a variety of ways in space conditioning and domestic water heating (Smith. pumps. heat pumps and electric boilers. space-conditioning systems afford the worker a healthy environment that enables productivity and a sense of well-being. including bathing. food preparation and in laboratories. chillers. or a central plant. The majority of space-conditioning electricity use in power plants is attributed to cool- . humidifiers. Workers in offices and laboratories require space conditioning to create comfortable environments in which to work. heat pump water heaters. electricity runs electric resistance water heaters. List of Lighting Technologies Applicable for Power Plant Energy Efficiency Improvement ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— POWER PLANT SPACE CONDITIONING AND DOMESTIC WATER HEATING High-Pressure Sodium Highintensity Discharge Lamps T-5 Fluorescent Lamps Metal Halide High-intensity Discharge Lamps Induction Lamps Multi-photon Emitting Phosphor Fluorescent Lighting Space conditioning and domestic water heating are other two technology application areas which use considerable electricity in power plants. Such environments can also lead to adverse health effects in occupants. the primary function is to heat. In water heating. cool. In space conditioning. cooling towers. air conditioners. humidify and provide air mixing and ventilating. Power plant space-conditioning systems may implement packaged roof-top or ground-mounted units. dehumidify. Spaces that are either too hot or too cold make it more difficult for individuals to carry out tasks. laundry. Electricity also powers the various controls used to operate space-conditioning equipment. When properly designed. Domestic water heating is also essential for the comfort and well-being of workers. resistance heaters. electricity drives devices such as fans. Hot water is used for a variety of daily functions. To this end. 2008). et al. dehumidifiers.
For example. Larger commercial-scale air-conditioning systems are often rated with energy-efficiency ratio (EER) and integrated part-load value (IPLV) parameters. The most common space conditioning systems for power plants are of the unitary type.000 Btu per hour) as of October 29. direct-expansion systems.5. For very large office buildings associated with power plants. The most notable advancements have been in space cooling equipment—largely in vapor compression cooling. it is possible to buy units with an EER as high as 12. Much of the progress in space cooling efficiency is due to federal standards that dictate the minimum efficiency of new air-conditioning systems. and so on. absorption chillers or central chiller plants are used. Great strides have been made in the last few decades to improve the efficiency of space conditioning and water heating equipment. Units with high EERs are typically more expensive. Improvements in the efficiency of space cooling systems have a large impact on electricity use in power plants with significant office and laboratory space.S. Though the volume of space that is mechanically cooled is on the rise.. in the 65. One of the most efficient space-conditioning devices is the heat pump. These systems store hot water in a tank until it is needed. Conventional electric water heating systems generally have one or two immersion heaters. each rated at 2 to 6 kW depending on tank size. Newer systems generate hot water on demand. corresponding increases in electricity consumption have been tempered by efficiency improvements in air-conditioning systems and improvement in building thermal integrity. Manufacturers sell systems with a broad range of efficiencies. Heat pumps can also be used for water heating and in integrated systems that combine water heating and space conditioning.8 to 9. The heating performance of a heat pump is measured by the heating seasonal performance factor (HSPF).000 to 135. which is equal to the number Btus of heat added per watt-hour of electricity input. Table 2-2 lists the minimum federal standards for largerscale units (>65.3 (Smith. more efficient motors.000 Btu per hour capacity range. HSPF values for commercially available heat pumps are 6. These are used for cooling approximately two-thirds of the air-conditioned spaces in U. et al.Electric Energy Efficiency in Power Production & Delivery 33 ing equipment rather than heating equipment.0 and higher for the most efficient . since they account for the majority of electricity use in these spaces. 2001. as the greater efficiency is achieved with larger heat exchange surface. 2008). power plants. either single-package systems or split systems. even though the current federal standard is 10.
34 The Smart Grid: Enabling Energy Efficiency and Demand Response ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— ———————————————————————————————— systems.2 9.5 9. the evaporator coils absorb heat from the building’s chilled water loop that runs through the evaporator.000 to <240. First. 760. or roughly half the new minimum requirement. The cooling performance of heat pumps is measured with the SEER value (as is used for air conditioners). high-temperature vapor and low-pressure. the liquid refrigerant flows from the condenser to the expansion valve.8 to a new minimum value of 7. The vapor compression refrigeration cycle expands. This heat causes the liquid to expand and become a vapor. boils. 2001 . Many existing older units have SEERs of 6 to 7. Therefore. the pressure and the temperature of the vapor increase before the vapor can be condensed by relatively warm water or air.7 135.5 and higher are typical for the most efficient systems.3 Equipment Size (Btu/hour) EER IPLV Table 2-2. and the refrigerant flows between high-pressure.000 to <760.000 and larger 9. In addition.8.0 (same as for air conditioners). and re-condenses the refrigerant. Values of 10. compresses. the minimum SEER values have been increased from 10.000 to <135. New federal standards took effect in 2006 which raised the HSPF for heat pumps from the 1992 minimum value of 6.4 240. This is accomplished either via a water-cooled or an air-cooled condenser.0 to 14. substantial efficiency improvements are possible by replacing older equipment.7 65. the vapor releases the heat it absorbed in the evaporator and the heat added by the compressor. Standards for Commercial-scale Air-conditioning Systems. Chillers are used in central space-conditioning systems to generate cooling and then typically distribute the cooling with chilled water to air-handling or fan-coil units. Finally.0 to 13. and it becomes a liquid again. The refrigeration system is closed. in the condenser.000 9. Second. The compressor maintains a pressure difference between the evaporator and condenser. which reduces the liquid pressure before it enters the evaporator. The refrigerant vapor then leaves the evaporator and flows to the compressor. Chillers are essentially packaged vapor compression systems. In the compressor.000 10. low-temperature liquid.000 9.
The efficiency of water heaters is measured with a quantity called the energy factor (EF). while water-cooled chillers usually require between 0. 0. Therefore. .g. Air-cooled condensers are sometimes used because they require much less maintenance than cooling towers and have lower installation costs.5 to 0. Chiller efficiency is specified in units of kW per ton of cooling. and use of the part-load efficiency is a more meaningful measure of performance.8 for natural gas units. 2008). baseline chillers). but most large units operate with evaporative cooling towers.. Higher EF values equate to more efficient water heaters. et al.. Typical EF values range from about 0.5 for electric resistance heaters. In full-load applications. improvements in chiller efficiency can have a large impact of electricity use. Cooling towers have the advantage of rejecting heat to a lower temperature heat sink because the water approaches the ambient wet-bulb temperature while air-cooled units are limited to the dry-bulb temperature. For part-load applications. Since there are no flame or stack losses in electric units. which are more common. Some chillers use air-cooled condensers. The heat loss is proportional to the temperature difference between the tank and its surroundings. the load on the chiller is high and relatively constant (e. Newer systems produce hot water on demand. air-cooled chillers have a higher condensing temperature. which lowers the efficiency of the chiller. The choice of both the compressor and the condenser affects the overall efficiency of the chiller. In full-load applications.4 to 0. air-cooled chillers require about 1 to 1. the load on the chiller is variable. 0. Building Infiltration A major cause of energy loss in space conditioning is due to air entering or leaving a conditioned space (Global Energy Partners.5 to 2. 2005). eliminating the storage tank and its associated losses.7 to 9. It is normally quoted based on the loading application—either full-load or part-load.3 kW or more per ton of cooling. and 1. They can also be desirable in areas of the country where water is scarce and/or water and water treatment costs are high since they do not depend on water for cooling.0 for heat pump water heaters (Smith. the major factor affecting the efficiency of electric water heaters is the standby loss incurred through the tank walls and from piping. As a result.Electric Energy Efficiency in Power Production & Delivery 35 Chillers are often the largest single user of electricity in a large office space-conditioning system.9 kW per ton. and the full-load efficiency is used to measure performance.7 to 0.85 for oil units.
Environmental pressures are changing the form of space conditioning and water heating devices. however. 1992). Air can infiltrate through numerous cracks and spaces created during building construction. and this is the terminology used here. and holes drilled in framing members for plumbing. doors and gaps between ceilings. windows. Sealing ducts in the building is also important to prevent the escape of heated or cooled air. natural. Tight spaces often require mechanical ventilation to ensure good air quality. caulking. et al. such as those associated with electrical outlets. and unintentional air transfer toward the outside is referred to as exfiltration. Caution must be exercised to provide adequate ventilation. Occupants find themselves dressing for winter during the summer to prevent being too cold from an over-active cooling system. wraps. walls. In a poorly “sealed” building. infiltration of cold or hot air will increase heating or cooling energy use. or taking off layers of clothing during the winter because the heating system seems to be running “full blast. However.” The temperatures are also variable throughout a given building. Complaints about the temperature from occupants of office spaces in plants are all too common. tapes and other seals can be used. such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). In addition.36 The Smart Grid: Enabling Energy Efficiency and Demand Response Unintentional air transfer toward the inside is referred to as infiltration. humidity is typically not controlled effectively. pipes. These refrigerants are being phased out. foam insulation. infiltration is often used to imply air leakage both into and out of a conditioned space. Infiltration results from temperature and pressure differences between the inside and outside of a conditioned space caused by wind. leaky duct work. Studies show employees find that onethird to one-half of office buildings are too cold or too warm (Kempton. To combat infiltration and reduce energy losses from heating and cooling systems. There are often hot spots and cold spots. convection and other forces. window and door frames. For example. Standards vary. electrical and HVAC equipment. traditional space-cooling technologies rely on vapor compression cycles that use ozone-depleting refrigerants. floors and so on.. nor is the level of indoor air contaminants. (1995 was the last year than CFC refrigerants could be legally manufactured in . ducts. or adjacent to the conditioned space). Major sources of air leakage are plenum bypasses (paths within walls that connect conditioned spaces with unconditioned spaces above. depending on the type of occupancy.
Table 2-3 lists the technologies that should be considered when assessing electric energy improvements for conditioned spaces in power plants. throttling valves or hydraulic couplings. Processes driven by pumps or fans are usually controlled mechanically with inlet guide vanes. ASDs increase plant availability and flexibility through improved process control and reduce emissions and maintenance costs. drives for gas booster compressors.) The Kyoto Protocol is driving the adoption of environmentally friendly space-cooling technologies in several countries around the world. most notably in Japan and Scandinavia.Electric Energy Efficiency in Power Production & Delivery 37 most of the industrialized world. Due to these varying conditions. the required flow of a fan or a pump varies due to changes in ambient conditions or fuel properties. In the future. space-cooling systems will increasingly rely on environmentally friendly “natural” refrigerants (one possible alternative is CO2) or they may use entirely new space-cooling technologies (e. a continuous control of the processes and equipment such as centrifugal fans and pumps. It can also be applied to novel heating devices such as microwave water heaters. cooling water. As the demand for electrical energy varies. boiler heat recovery steam generators (HRSG) feedwater pumps and cooling water pumps. MOTORS Processes driven by electric motors typically consume 80% of the electricity used in electricity production. HCFC refrigerants will be produced until 2030. In gas turbine power plants. Space-heating and water-heating systems that rely on the combustion of fossil fuels are also being replaced by cleaner alternatives..g. they can also be used for gas turbine (GT) starters. is required. ASDs can be used in power plants for boiler feedwater. Implementing electric adjustable speed drives (ASDs) on motors in power plants improves the heat rate by increasing the efficiency of these processes. circulation water pumps as well as forced draft (FD) and induced draft (ID) fans. magnetic refrigeration and thermotunneling). It can be used to drive heat pumps for space conditioning and for domestic water heating. Electricity is an efficient source of energy that is very clean at the point of use. .
38 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 2-3. List of Space Conditioning and Domestic Water Heating Technologies .
This saves energy. Since pumps and fans typically run at partial mechanical load.S. The modified LCI inverter. it has no output filter capacitor requirement. They are as follows: • • • Current-source inverter Modified load commutated inverter (modified LCI) Current-source gate turn-off thyristor-pulse-width modulated (GTO-PWM) Of these three. The current-source system has been shown to have a number of excellent features.com). another form of current-source technology. The modified LCI system has the simplicity afforded by a rectifier and inverter using the same components.Electric Energy Efficiency in Power Production & Delivery 39 The motors are driven at a fixed speed making it practically impossible to achieve the optimal process efficiency over a control range. 12-pulse output configuration. by employing adjustable speed drives (inverter technologies) on centrifugal pumps and fans instead of throttling or using inlet guide vanes. This system has been packaged with water cooling of the power electronics to sim- . With electric adjustable speed drives. Although a number of ASD technologies have been found to exist commercially for large motors. three U. according to ABB (www. and can be used in a full regenerative braking mode. changing the mechanical output of the system is achieved by changing the motor speed. has provided an economic ASD system that has shown the power production industry that it can reduce fuel costs in many motor applications with electronic speed control. the energy bill can be reduced by as much as 60%. For example. A small reduction in speed correlates to a large reduction in the energy consumption. designed technologies have survived the rigors of competition. The DC link diverter circuit provides for inverter commutation when the output filter capacitor can no longer provide excitation to the induction motor to allow LCI operations. decreases CO2 and other emissions from electricity production and minimizes operating costs. A pump or a fan running at half speed consumes one-eighth of the energy compared to one running at full speed. the latter two are still being successfully sold for large motors (2000 HP and larger). substantial energy savings can be achieved by controlling motor speed with adjustable speed drives.ABB. It has good harmonic control when used in a 12-pulse input.
These field tests yielded a wealth on the application of this technology to large power plant induction motors. Motor vibrations were measured over the speed range. Vector control has also been introduced to allow separation of motor flux control and motor current control to allow the control of torque separately from voltage. modified load-commutated inverters and the current-source GTO-PWM inverters were installed in over 200 installations nationwide. rapid advances had been made in the technology of ASDs for large induction motors. Water cooling is important for many power plant applications where the air is contaminated with coal or ash dust. Several ASD cooling systems and enclosures were evaluated in the course of the test program.40 The Smart Grid: Enabling Energy Efficiency and Demand Response plify the overall cooling system. During this time. ranging from 600 HP to 9000 HP. Four utilities participated in field tests of these large ASDs on boiler feed pumps and forced draft fans. thus eliminating the control valve or inlet vanes and the power losses associated with these devices. Current and voltage wave shapes were recorded and means were established to determine ASD efficiency. The test program observed the performance of the equipment operating with and without ASD control. Power measurements were made to verify power savings and economics. The principal gains arose from new schemes for commutating the inverter. These tests occurred over a five-year period. PWM stands for pulse-width modulated—a technique for creating low harmonic content AC waveforms. EPRI DEMONSTRATIONS EPRI has conducted research programs to study the application of high-power adjustable speed drives (ASDs) to auxiliary motors of electric generating stations (EPRI CU-9614. Among the lessons learned in this work were the following: . The power electronics equipment additions allowed control of feedwater flow or air flow directly by motor speed. GTO stands for gate turn-off thyristors. These field test projects use the existing power plant squirrel cage induction motors. In the period of the field tests. 1990). Harmonics were measured at the input and output of the ASD.
— Power electronic devices. Reliability of large ASDs is not an issue.Electric Energy Efficiency in Power Production & Delivery • • 41 The potential for operating cost savings by controlling process flow with motor speed is real. and interruptions on ASD performance. This configuration has the following features: • • Input transformer to control input harmonics and line-to-ground voltage at the motor. Several improvements in ASDs that have developed directly from operating experience have contributed to improved overall system reliability: — An input transformer is now used on all large ASD installations to control common-mode voltage. • • • The preferred configuration for a large power plant induction motor ASD is shown in Figure 2-1. GTO thyristor inverter to control harmonics to the motor in order to eliminate shaft torsional resonance. — Shaft torsional resonance caused by interaction of the ASD output capacitor filter and the motor winding is now understood and can be controlled either by eliminating harmful output harmonics with the GTO-PWM ASD or a 12-pulse inverter or by separating the electrical and mechanical resonance frequencies with an output reactor. — Available control systems have proven to provide trouble-free service. . Utilizing the information gained from these tests. like thyristors and GTOs. a preferred configuration for a power plant-specific ASD has evolved. Water-cooled thyristors to simplify cooling of the ASD in the often hot. dips. Ground between inverter and motor to control line-to-ground voltage at the motor used in combination with input transformer. have proven to be robust and reliable when correctly applied. dusty environment of power plants. Uninterruptible power supply (UPS) system for clean power to the ASD control system to eliminate adverse effects from voltage spikes.
However. different rectifier arrangements. Different housings. different cooling systems. Utility-specific ASD The lessons learned in EPRI field test installations and from several other recent utility installations of induction motor ASDs have contributed to a concept for a second-generation ASD specifically for power plants. Features of the power plant-specific ASD are as follows: • • Use of input transformer for 12-pulse or 18-pulse converter. and different inverter technologies have been analyzed. Preferred Configuration for Large Power Plant ASD There have been remarkable advances in power electronics control of large induction motors in power plant applications. the application of adjustable speed drive to large induction motors is still a relatively new technology.42 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 2-1. Grounding of ASD system to stabilize DC link voltage and eliminate motor over-voltage. and preferred ASD application procedures have been identified. .
evidence suggests that utilities may be able to achieve dramatic energy and demand savings by operating distribution feeders at the lower end of acceptable service ranges through smart grid applications. few recent studies have examined this potential and the means to attain it. across all sectors of the economy. Water-cooled thyristors for simplified and more effective cooling. The transmission and distribution system is responsible for 7% of electricity losses. By some estimates.S. On the customer side of the meter. Department of Energy (DOE) recently issued a final rule (October 2007) that mandates efficiency standards for various types of distribution transformers beginning in 2010. As a result. On the distribution system. the U. data from many utilities clearly prove that tighter voltage control reduces energy consumption. only 7. feeders incorporate the necessary technologies to tightly control voltage in this fashion.5% of U. Despite considerable utility research on this subject in the 1970s and 1980s. . At the same time.S. a number of utilities have applied the concept of conservation voltage reduction (CVR) to control distribution voltage and reduce end-use energy consumption without adverse effects. Control of or elimination of resonance between output filter and motor. spikes and interruptions. the opportunities for improving energy efficiency are many and varied. EFFICIENCY IN POWER DELIVERY The improvement in the power delivery system (electric transmission and distribution) through the use of smart grid technologies can provide significant opportunities to improve energy efficiency in the electric power value chain. DOE estimates that these standards will reduce transformer losses and operating costs by 9 to 26%. CONSERVATION VOLTAGE REDUCTION On the distribution system. This concept is called conservation voltage reduction (CVR).Electric Energy Efficiency in Power Production & Delivery • • • 43 Built-in design tolerance for bus voltage swings.
the governing U.S. and thereby saves energy. based on equal weighting of 13 utility CVR factors. Utilities generally regard 114 V as the lowest acceptable service voltage to customers under normal conditions. In general. act as resistors and predominantly draw real power. In fact.4 to 1. Distribution system efficiency (DSE) refers to a range of electric utility measures designed to modify the voltage delivered to end-use customers to a range lower than or tighter than the ANSI standard C84. or 114-126 V.0.” which is defined as the percentage reduction in power resulting from a 1% reduction in voltage. As a result. lowering voltage decreases load.8). resistive loads respond directly with voltage changes—lower voltages result in reduced power consumption.0. and most appliances are designed to operate at no less than 110 V of delivered voltage. . standard is the American National Standards Institute (ANSI) standard C84. power use still varies directly with the voltage for resistive loads. is the metric most often used to gauge the effectiveness of voltage reduction as a load reduction or energy savings tool. may even slightly exceed 1.S.44 The Smart Grid: Enabling Energy Efficiency and Demand Response For a typical U. The CVR factor differs from utility to utility and circuit to circuit based on each circuit’s unique load characteristics. automatic controls on resistive loads such as space and water heaters usually reduce this impact.-based. meaning that the CVR factor will be greater than 1.1. 120-V nominal service voltage (as measured at the customer meter). which specifies a preferred range of +/– 5%. Empirical data from utilities across the United States suggests that CVR factors range from 0. However. Resistive loads. power use in an individual resistive load is proportional to the square of the voltage.0 as long as the load is on.1. as well as to maximize revenue from electricity sales. in aggregate. EPRI recently completed a calculation of the mean CVR factor (0. “CVR Factor. over a large number of loads by keeping heater elements “on” for longer periods to maintain temperatures. since a 4-volt decrease is typically assumed from the customer meter to the plug. One key characteristic that determines the effectiveness of voltage regulation for load reduction is the amount of resistive versus reactive load in a given circuit. Utilities tend to maintain the average voltage above 120 V to provide a larger safety margin during periods of unusually high loads. such as electric resistance space and water heaters and incandescent lamps. and in some cases. Despite this phenomenon.
typically containing significant inductance (also known as inductive loads). therefore. Some utility engineers believe that certain loads draw more current at lower voltage levels and that. Distribution System Efficiency (DSE) in the Context of the ANSI C84.” This allows utilities to reduce voltage by 5% during critical peak periods (CPP) while remaining within preferred voltage standards.1 Preferred Service Voltage Standard for 120-V Systems. Apart from some regional pockets of activity.Electric Energy Efficiency in Power Production & Delivery 45 Figure 2-2. data from many utilities clearly prove that most loads do consume less power at lower . utilities have not embraced voltage reduction as a means of energy conservation. A more common practice is use of voltage reduction as an operational strategy related to the “operating reserve margin. 2005) Reactive loads. This effect is most pronounced for industrial customers with large induction motor loads. especially if customer equipment voltages fall below industry guidelines. and compressors. while this inverse relationship may hold true for certain types of loads. (Global Energy Partners. which draw both real and inductive-reactive power. include motors. However. lower voltage does not necessarily result in reduced loads. The most fundamental barrier to the consideration and adoption of voltage reduction for energy conservation objectives is technical skepticism over the link between voltage reduction and load reduction. Reducing voltages to these loads does not always linearly reduce power consumption and can even have the opposite effect. particularly for those that include adjustable speed drive mechanisms. pumps.
Utilities also regard their service territories and load characteristics as unique and tend not to share information about distribution voltage practices. which could cause life support and radiology equipment to fail. utilities need to invest in additional equipment such as capacitors or rework secondary systems to shorten the secondary conductors. Even short feeder lines where customers have long secondary feeders result in large perceived voltage drops. Because most of the United States is not presently capacityconstrained. In order to reduce these complaints. Utilities cite several other reasons for skepticism about the potential effectiveness of voltage reduction. Provided that it can overcome its several obstacles. which poses an economic barrier for the companies. Three classes of single-phase and three-phase transformers are in common use on today’s . Long feeder lines present another problem for utilities serving rural areas. customers might simply switch to higher wattage bulbs. it is hard-pressed to justify the economics of more stringent voltage regulation. many utilities plan to reduce voltages only during system emergencies or for just a few peak days during the year. Electronic devices such as computers and certain medical equipment are very sensitive even to minor voltage drops.46 The Smart Grid: Enabling Energy Efficiency and Demand Response voltages within acceptable operating ranges. Another cause for the utilities’ concern is the increased risk of customer complaints stemming from lower voltage. negating the expected energy savings. DISTRIBUTION TRANSFORMER EFFICIENCY Developments in transformer technology and construction can also improve the efficiency of power distribution. for example. If a utility does not face peak capacity constraints or is unable to re-sell capacity on the wholesale market. where occasional voltage drops below 114 V result in increased customer complaints. For example. CVR promises to deliver energy more efficiently to end users. if lower voltages result in perceptibly dimmer lights. Utilities also note that voltage regulation reduces power consumption. A “take-back effect” hypothesizes that voltage reductions will be only temporary because customers will adjust their usage based on perceived changes to the effect on end-use.
While transformers are generally very efficient. 2005). test procedure TP-1 adopted by the National Electrical Manufacturers Association (NEMA) in 1996. Core losses result from the magnetizing and de-magnetizing of the transformer core during normal operation. or Europe. Winding losses occur when supplying power to a connected load. However. Aggregate transformer losses in U. and liquid-immersed transformers for inputs of up to 2. Amorphous core transformers have not been widely adopted in the U.500 kVA. Following the standard U. with losses of only about 0.Electric Energy Efficiency in Power Production & Delivery 47 distribution systems: low-voltage. Transformer efficiency is rated as a percentage when tested at a specified load. Transformer Core and Winding Losses Transformer losses consist of two types: core (or “no-load”) losses and winding losses (also called “coil” or “load” losses). power distribution can exceed 3%. dry-type transformers for inputs of 601-34.500 volts.25%. and the other two transformer types are rated at 50% of full load. Liquid-filled transformers are the most efficient. and China. Furthermore. while medium-size dry-type transformer losses total about 5% and small dry-type unit losses equal about 2%. dry-type transformers for inputs less than or equal to 600 volts. Amorphous core transformers can reduce these core losses by as much as 80% compared with conventional materials (see Figure 2-3). The U.S. due to a higher first cost than conventional transformers. 2002). or 140 billion kWh/ year. medium-voltage.S. Not all transformer classes exhibit the same levels of losses. India. low-voltage. demand is increasing rapidly in countries such as Japan.S. Winding loss is a function of the resistance of the winding material—copper or aluminum—and varies with the load. even a small amount of loss multiplied by the more than 25 million installed distribution transformers accounts for the largest single point of energy loss on power distribution systems. the price differential is declining as silicon steel prices increase. Environmental Protection Agency’s Energy Star unit estimates that about 61 billion kWh/year of that power loss could be saved by using higher efficiency transformers (Global Energy Partners.S. they do not vary with load. dry-type transformers are rated at 35% of full load. Conventional transformers use aluminum winding and are designed to operate at . but occur whenever the core is energized (Fetters.
New Transformer Efficiency Standards On October 12. temperatures up to 150°C/270°F above ambient. Newer high-efficiency transformers use copper winding. 2007. reducing the size of the core. Source: Metglas. overall transformer efficiency is lowest under light load. dry-type distribution transformers.S. the associated core losses. It points out in the final rule that . DOE also concludes that the economic impacts on utilities of the new efficiency standards are positive. In most cases. the standards range between TSL-4 (minimum lifecycle cost) and TSL-5 (maximum energy savings with no change in lifecycle cost) (see Figure 2-4) (Federal Register. 2010. 2007). The effective date of the new rule is November 13. and the operating temperatures to 80°C or 115°C (145°F to 207°F) above ambient. the U. The standards apply to liquid-immersed and medium-voltage. Hence. 2007. The final rule notes that these levels are achievable using existing designs of distribution transformers. Department of Energy (DOE) issued a final rule governing distribution transformer efficiency.48 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 2-3. regardless of which core material is used. and the standards it mandates will be applicable beginning on January 1. and highest at rated load. These new mandatory efficiency levels range higher than existing NEMA TP-1 standards (represented in the rulemaking process as TSL-1). Transformer Efficiency with Amorphous Metal Core Compared with Conventional Steel Core.
Electric Energy Efficiency in Power Production & Delivery 49 Figure 2-4. which is equivalent to 80% of the emissions of all light vehicles in the U. Similarly. currently in the very early stages of development. DOE concludes that the standards are “technologically feasible and economically justified.” Advanced Transformer Technology The intelligent universal transformer (IUT).74 quads of energy from 2010-2038. for one year. 2007). and will result in significant energy savings (Federal Register. This energy savings will decrease CO2 emissions by about 238 million tons. which is equivalent to the energy that 27 million homes consume in one year. but the corresponding losses and operating costs will decrease by 9 to 26%. while new DOE transformer efficiency standards range between TSL2—TSL3 and TSL4—TSL5 for transformers of varying voltages. is an advanced power electronic system concept that would entirely replace conventional distribution transformers. initial costs of liquid-immersed transformers will rise by 6 to 12%. dry-type transformers will rise by 3 to 13%. but higher efficiency off-peak. DOE projects that the standards will save about 2. On a national level. the initial costs for medium-voltage. IUTs have a flat efficiency characteristic with a somewhat lower efficiency peak. They are expected to perform with less total loss (higher overall efficiency) over a daily load cycle. but that operating costs (and electrical losses) will decrease by 15 to 23%. . Hence. Existing NEMA standards are represented by TSL1 on this graph. The potential efficiencies of amorphous core transformers are at the high end of achievable efficiencies.S.
which would enhance the efficiency of the entire distribution grid. IUTs can replace larger inventory requirements of many conventional transformers at different rating levels. output ports for dc power and alternative ac frequencies. Component costs for IUTs are steadily falling. and cost. An IUT is a solid-state transformer. and use optional functions (prioritized by sponsors) such as voltage regulation. As such. similar to the power supply in a desktop computer. the IUT contains none of the hazardous liquid dielectrics found in conventional transformers. compared with components in standard transformers. The various distribution system components are made interoperable in ADA. and interface with distributed generation. While IUTs currently exist only in the laboratory. In total. ADA will be a revolutionary change to distribution system infrastructure. Because the modules of IUT systems can be configured for several rating levels. the device would eliminate power quality problems and convert loads to sinusoidal and unity power factor. ADA is concerned with complete automation of all the controllable equipment and functions in the distribution system to improve strategic system operation. The result is added functionality and improved performance. IUTs also eliminate secondary power faults. both in new installations and to replace aging units. Advanced Distribution Automation (ADA) The IUT is one component in a broader strategy called advanced distribution automation (ADA). models could be available within only a few years. Utilities can use IUTs as distribution system monitoring nodes to support system operations and advanced automation. ADA is distinct from traditional distribution automation (DA). which are steadily rising in price. avoiding the hazards and costs of spills. configuring to supply three-phase power from a single-phase circuit. . with active development and testing.50 The Smart Grid: Enabling Energy Efficiency and Demand Response The IUT would also provide numerous system operating benefits and added functionality relative to conventional transformers. IUTs can replace conventional distribution transformers. reliability. as opposed to simple incremental improvements to DA. At the same time. and communication and control capabilities are put in place to operate the system. and have very low no-load losses. Traditional DA enables automated control of basic distribution circuit switching functions. supply DC offset loads. relative to today’s system operations.
Energy Conservation Program for Commercial Equipment: Distribution Transformers Energy Conservation Standards. No. Samotyj. and control systems. M. 58189. report number E05-139. and improve reliability in the frontend of the electricity value chain. CONCLUSION The smart grid as a concept must extend from power production through delivery to end-use.. 197. Final Rule. Global Energy Partners. the IUT). 72. Federal Register. October 12. optimized radial and networked configurations). Development and demonstration of a five-wire distribution system. EPRI Report CU-6914. 2007. 2005. communications and computational ability can be effectively used to reduce energy consumption.e.g. Additional areas where significant development is required to achieve the objectives and the vision of ADA include: • • • • Development of an integrated distribution system with storage and distributed generation. open and standardized communication architecture.J.. John L.Electric Energy Efficiency in Power Production & Delivery 51 While there are numerous areas where R&D advances are needed to realize ADA. 10 CFR Part 431. 2002.. December 1990. LLC. May 18. Electric Power Research Institute. Integration of smart metering concepts that would enable consumers and utilities to maximize the benefits of night-time recharging of plug-in electric vehicles. Program Manager. five key areas include (Federal Register. reduce emissions from power production. No. Market Progress Evaluation Report. . Fetters. References Retrofitting Utility Power Plant Motors for Adjustable Speed: Field Test Program. Transformer Efficiency. Concepts of functionality employing sensors. sensor and monitoring systems. Distribution Efficiency Initiative. 2007): system topologies (i. April 23. Development of advanced tools to improve construction. troubleshooting and repair. electronic/electrical technology development such as intelligent electronic devices (e. Vol. 1.
“Electrical Energy Management in Buildings. Kreith and D. 3 (1992).Y.E.B.52 The Smart Grid: Enabling Energy Efficiency and Demand Response Smith. no. 1285-4-04. 2008. Indoor Environmental Quality in Energy Efficient Homes: Marketing Tools for Utility Representatives. W. and K. pp. Goswami. Kempton. CA: 2005. C. Lafayette.” Energy and Buildings. Lutzenhiser. Parmenter. and L.” in CRC Handbook of Energy Conservation and Renewable Energy. 171-176. Global Energy Partners. LLC. 18. “Introduction.. vol. . edited by F.
Energy efficiency involves a deliberate effort on behalf of the utility to promote change in the load shape (amount or pattern) by the customer through such hardwarerelated actions as improved building-thermal integrity coupled with increased appliance efficiencies through such non-hardware-related actions as altered consumer utilization patterns. In particular. changes in the pattern and magnitude of a utility’s load. interruptible loads. centering on the issue of electric end-use energy efficiency as an alternative to traditional supply sources and to using fossil fuels at the point of end use. Increasing costs. regulatory encouragement. it is the focus on the smart grid that enables this revival of interest. That debate now seems to be coming to closure. Demand-side planning involves those utility activities designed to influence customer use of electricity in ways that will produce desired changes in the utility’s load shape. and concerns about global warming have caused utility managers to consider demand-side activities. controllable sources of capacity and energy such as long-term contracts or power plants. and energy efficiency. as well as through the 53 . dispersed generation.Chapter 3 Electric End-use Energy Efficiency DEFINING ELECTRIC END-USE ENERGY EFFICIENCY A debate has raged for decades in the electric utility industry. customer load control. that is. The utility industry is deeply rooted in the need for traditional. Energy efficiency as an alternative to traditional supply sources is no longer a debatable issue in the electric utility industry. ENERGY EFFICIENCY Demand-side planning includes many load-shape-change activities including energy storage. the use of efficient electric end-use applications to displace fossil fuels has again surfaced as an essential part of an overall end-use efficiency strategy. As this debate has matured.
these days. Gellings and Patricia Hurtado. . The energy industry has also come to realize that among all the measures that can be used as resources in meeting energy demand. The electric sector has come to realize that a variety of energy sources and demand-side alternatives are necessary to maintain that standard of living. Parmenter and Cecilia Arzbacher of Global Energy Partners. They are in the energy business and are dedicated to delivering kWh to consumers. Energy efficiency has the capability of saving all forms of non-renewable energy resources.54 The Smart Grid: Enabling Energy Efficiency and Demand Response adoption of electric end-uses which displace fossil fuels while coincidentally reducing overall energy use and emissions. LLC. Certainly few for-profit companies would readily embrace aggressive programs to decrease sales of their own products. The illusion of infinite resources has supported and sustained a high standard of living. Those supplying goods and services would have great difficulty embracing a role that involved spending time and money to convince customers that using fewer of their goods and services would be in the customer’s best interest. along with societal needs. Kelly E. This reflects a desire to take a more holistic view of their customers’ welfare. it may be beneficial for the supplier as well as for its customers and certainly for the environment. It has taken the world several decades to realize fully that energy is not an infinite resource. when utilities talk energy efficiency. Many individuals involved in the electric utility industry are uncomfortable when talking about energy efficiency. as well as to address global warming concerns and provide economic stability and national security. IS ENERGY EFFICIENCY COST-EFFECTIVE? But is it really cost-effective? Does it cost the consumer less in the long run? *Based in part on material prepared by Clark W. energy efficiency is the simplest option and the most rewarding in the near term with regard to benefits to the energy supplier and the energy consumer.* they often mean it. While energy efficiency does seem somewhat inconsistent with the electricity “business” mission of selling energy. and many are convinced that they are doing so for good reasons. However.
Wholesale market capacity\. FINANCIAL IMPACTS OF ENERGY EFFICIENCY Dealing with energy efficient technologies involves promoting the adoption of efficiency end-use technologies. When a system benefit is not achieved to offset the cost of energy efficiency. each energy efficiency activity must be evaluated in light of capacity alternatives. financial capability. Since end-use activities can impact a variety of costs. direct incentives. Energy efficiency programs and/or activities are utility-specific. etc.Electric End-use Energy Efficiency 55 The question of whether energy efficiency is cost-effective depends on both the type of energy efficiency program under consideration and on the utility’s characteristics. these form the greatest costs of an energy efficiency program. This can have huge impacts where efficient electric technologies displace inefficient gas or oil technologies. environmental impacts and other energy efficiency options that are available. and the potential CO2 reductions from programs from the market participants in the region. An additional economic benefit which is evolving entails using energy efficiency as a CO2 credit. In evaluating the benefits and costs of demand-side activities. the adoption of electric technologies which replace gas or oil end use. capacity reserves. one useful criteria which can be used is the impact on total costs. load characteristics. In many cases. etc. prices. fuel mix and capacity pur- . Each must be evaluated on the basis of economics as applied to a particular utility. and/or invoking change in the customer’s behavior. The overall economics will vary due to variations in weather. Among these are the fuel mix. however. On some systems. energy efficiency may be the cheapest source of energy. Costs and savings include a broad variety of items such as marketing. advertising and promotion. the result may be higher costs. evaluation usually is accomplished by a modeling technique that separately simulates the price of electricity to the average customer and to those participating in programs. generation mix. HOW DESIRABLE IS ENERGY EFFICIENCY? The desirability of embracing energy efficiency from an industry participant perspective depends on many factors. fuel costs.
where capacity is adequate or the ability to build new capacity is feasible. Since most regions are experiencing growth. delivery. The result was a notable increase in the efficiency of these production. and utilization technologies . However. the marginal benefits may exceed costs for energy efficiency programs. wind or hydropower. A RENEWED MANDATE The 1970s and 1980s showed great strides in the rate of improvement of end-use electric energy efficiency. On the other hand. For distribution utilities without generation assets who are billed for capacity based on an inverted rate. benefit stakeholders by deferring the need for new capital. then other types of energy efficiency such as those involving load shifting. especially if the region’s ability to build new capacity is limited. it is logical to argue that the service provider could afford to use this difference (marginal less average) to promote or finance energy efficiency. it would be logical to approximate the cost of potential decreased units of energy by equating them to the marginal cost of supply additional increments of energy. and utilization. capacity (especially new capacity involving advanced coal or nuclear) may be cheaper than energy efficiency. It the marginal fuel is oil or gas for both on- and off-peak periods. if stocks are selling below book value and the regulatory commission is not allowing an adequate rate of return. A critical capacity situation provides a strong motive for interest in energy efficiency. delivery. Energy efficiency may. and novel methods of energy supply. For small changes in sales. nuclear.56 The Smart Grid: Enabling Energy Efficiency and Demand Response chases are the largest determinants of the marginal cost impacts of loadshape modification. neither of these options can be in place at the pace of energy efficiency. processes. If the fuel mix is such that off-peak marginal energy is produced by coal. each new sale of stock hurts the existing shareholders. The oil embargos of the 1970s were a wake up call to much of the world that led to significant policy efforts to curb wasteful energy use and to develop and promote new energy efficient technologies. therefore. In the case of investor-owned utilities. Inflationary pressures in many cases are forcing the marginal cost of electrical energy to exceed the average cost. then energy efficiency will offer great potential for cost reduction. will be desirable.
The increasing demand for electricity. Degradation to the environment from energy related causes has resulted in a significant international movement to protect the environment and its inhabitants. energy efficiency is ready to make a resurgence with a new generation of technologies. Since the 1990s. improvement in technology. Policy makers and energy companies are well-positioned to develop strategies for meeting growing and changing energy needs of the public through energy efficiency. the uncertainty in the availability of fossil fuels to meet tomorrow’s energy needs. The threats to national security that result from dependence on non-domestic energy resources have resulted in policy efforts to maximize the use of domestic . and concerns over the environmental impacts resulting from the combustion of those fuels—in particular. History has demonstrated how the traditional drivers for energy efficiency have impacted worldwide energy consumption. policies and programs. This and other additional efficiency “resources” have yet to be fully tapped. This discrepancy in efficiency improvement rates since the 1970s is an example of the unrealized potential of energy efficiency. delivery. in essence. and the implementation of policies as a whole in the last one-and-a-half decades have not been as effective in furthering energy efficiency as in the 1970s and 1980s—the consequence of which is greater per-capita global demand for energy today than would have been required had efficiency gains kept up with the previous momentum. the global rate of efficiency improvement has slowed relative to the previous decades. This awareness has effected changes particularly in highly organized industrialized countries. Spurred on by both traditional and renewed drivers.Electric End-use Energy Efficiency 57 and systems and a companion decrease in the energy intensity of enduse devices and processes. greenhouse gas emissions—combine to create a renewed urgency for energy efficiency gains. with some regions experiencing lesser rates of improvement than others. The awareness of limited fossil fuel resources has created an impetus to improve the efficient production. but. the development of efficiency programs by utilities and government organizations. The increase in worldwide energy use that goes hand-in-hand with population growth and development has made it necessary to develop new technologies that can accomplish a given task with less energy. Many factors have contributed to this deceleration. which reduced the global rate of increase in energy consumption. and use of energy and develop cost-effective ways to implement renewable energy sources.
3. and utilization. due in part to increased family planning throughout the world. The relevance of each of these four factors is summarized as follows. Even with a slowdown. There is an increasing perception that the environment is suffering as a result of resource extraction. conversion. The primary reason is that the population is growing at an exponential rate. and global efforts to reduce greenhouse gas emissions. the population increases by about three people every second—for every five people born. Increasing Worldwide Demand for Energy The overall energy consumption of the world is increasing as a result of two main reasons. The United Nations predicts that population growth will slow down and stabilize over the next century.0 billion to 6. 2. DRIVERS OF ENERGY EFFICIENCY The primary reasons to increase worldwide energy efficiency can be grouped into four main factors: 1. increasing fuel costs. What does this mean for energy consumption? Each new person will need a share . it is estimated that the population will reach 9 billion by 2042. At this rate. A dependence on non-domestic energy supplies compromises national security for many nations.6 billion. two people die. 4. Since 1960. Worldwide energy consumption is growing due to population growth and increased energy use per capita in both developed and developing countries. Fossil fuel resources are finite. there has been a growing awareness of the value of a very important national and international resource—energy efficiency. Indeed.58 The Smart Grid: Enabling Energy Efficiency and Demand Response resources. This awareness is now heightened in the face of renewed drivers related to energy supply constraints. and the cost to extract and utilize these resources in an environmentally-benign manner is becoming increasingly expensive. the world population has increased from 3.
Unconventional hydrocarbons (in particular. However.Electric End-use Energy Efficiency 59 of the world’s energy resources. Other finite resources include nuclear fuels and unconventional hydrocarbons. Renewable resources have always been important and will increasingly be important in the future. In addition. This application of nuclear fuels could extend resource availability by several hundred years or longer. Some estimates predict that fossil fuels will only be viable as an energy source for one more century. The exact quantity of fossil fuel resources is under constant debate. their success will depend on the level to which they implement efficient technologies and practices. As countries become more industrialized. China is currently experiencing the most significant growth in energy demand due to both economic development and population growth. It also buys time for the future development of alternative resources. further technical advancements are needed to improve the cost-effectiveness of replacing fossil fuels with renewable energy forms. Finite Resources Much of the world depends on a finite supply of fossil fuels to meet their energy needs. although. hydrogen) will likely be another resource of the future. For example. . The fuels that were once considered to be readily available and cheap are now becoming scarce and expensive. In addition. National Security Fossil fuel resources are not evenly divided throughout the world. energy use per capita is increasing in both developed and developing countries. the one point that cannot be disputed is that the expense to extract fossil fuels will become increasingly cost prohibitive as the supplies become more dilute and less available. the use of breeder reactors and the disposal of radioactive waste—is resolved. the perceived environmental impacts of fossil fuel combustion may be another limiting factor to their continued use. but at the current time they are relatively uneconomical to produce and utilize. There is a potential for significantly more useful energy to be extracted from nuclear reserves if the controversy surrounding nuclear power—in particular. The quantity of nuclear fuel resources for use in conventional light water reactors is thought to be less than fossil fuel reserves. Energy efficiency is a relatively quick and effective way to minimize depletion of resources.
This is evidenced by continued tensions with the Middle East. RENEWED INTEREST The above considerations—population growth. Countries that rely on fuel imports from other. Many of the countries in the Middle East are politically unstable. resources for the two predominant energy sources. exposure to air pollutants is hazardous to humans and other living species. Several Eastern European countries are currently undergoing transition. implementation of non-polluting renewable energy forms. potentially less stable governments. petroleum and natural gas. Gaseous and particulate emissions from power generation plants and many industrial processes impact the atmosphere at increasing rates.60 The Smart Grid: Enabling Energy Efficiency and Demand Response In fact. and efforts that promote the development of energy efficient technologies and practices are effective alternatives to efforts that focus on the construction of new power . which can in turn improve national security and stabilize energy prices. and can cause a variety of health effects. waste management. increased costs associated with extracting and converting less accessible energy forms. the extraction and transportation of fossil fuels can result in environmental damage. and improved energy efficiency. Effective energy efficiency programs can reduce a country’s reliance on non-domestic energy sources. increased air pollution control measures. and environmental degradation—are all important considerations that point to the need for improved energy efficiency. national security. Moreover. oil spills from tankers can be disastrous to the marine and coastal environments. In addition. The environment will greatly benefit from minimized use of environmentally hazardous energy forms. Effects to the environment include the destruction of forests in Central Europe by acid rain and potential climate change due to rising greenhouse gas levels. are concentrated in the Middle East and in Eastern European countries. History has shown that energy efficiency works. run the risk of compromising national security. increased energy use per capita in developing countries. The Environment The environment appears to be experiencing damage as a direct result of industrialization and fossil fuel consumption. For example. limited resources.
g. . The current energy state is in some ways very much like the state during the 1973 oil embargo. Two of major differences seen today are 1) the increased cognizance that supplying peak loads in capacity constrained areas is very expensive.) Addressing the second issue has resulted in a world-wide movement to reduce greenhouse gas emissions in hopes of arresting the pace of climate change.. in the United States. Many geographic regions have been experiencing rate shocks. nuclear power. greater use of renewables.e. the worldwide demand for energy is still growing. Rather. and of course. which also include: • Alteration of the power generation mix (e. In terms of alternatives to reduce greenhouse gas emissions. and advanced coal). there are still concerns over reducing dependence on foreign energy supplies from politically unstable regions. in fact. (Section 5 discusses a new concept for marketing programs that integrates energy efficiency and demand response. energy efficiency has provided more “capacity” since the Arab oil embargo of 1973 than any efforts to increase the development of new resources. It is not the point of this paper to get involved in the debate of whether or not anthropogenic greenhouse gas emissions are linked to climate change. concerns that the environment is suffering. The following subsection illustrates how energy efficiency is an important component in the portfolio of strategies to reduce greenhouse gas emissions. Reducing Greenhouse Gas Emissions The debate continues with some providing evidence they allege proves the anthropogenic (i.Electric End-use Energy Efficiency 61 plants and on the discovery and procurement of additional finite energy supplies. In fact.. Addressing the first issue has led to a proliferation of new demand response pilots and programs. experts believe that energy efficiency leads the list of a portfolio of strategies. human-caused) forcing of climate change due to greenhouse gas emissions and others voicing out that there is insufficient reason to believe that recent climate change is not part of a natural cycle. and 2) the greater concern that there may be a link between climate change and energy-related greenhouse gas emissions. the point is to show that reducing greenhouse gas emissions is. one of a number of motivations that support a global imperative to improve energy efficiency.
wind-power. the most important mitigation alternatives consist of improvements in the efficiency of generation. Forestry 7. Industry 5. fuel switching. transmission. rail transport.e. Renewables are in the form of hydro-power. and transportation). and advanced coal technologies in the energy supply mix. Much focus has been placed on road transport because of its large share of mobile emissions. and aircraft. greater proportions of nuclear energy.. bio-energy. The technical maturity. It also includes improving the operational efficiency (e. Agriculture 6. renewables. and Improvements in the energy efficiency of end-use devices and electricity generation. • • • Greenhouse gas mitigation strategies can be grouped into the seven main categories responsible for anthropogenic greenhouse gas emissions: 1. replacing existing use of greenhouse-gasintensive fuels with cleaner energy forms in electricity generation. Measures particularly applicable to road transport include employing refrigerants with low global warm- . solar-thermal. Buildings 4. Carbon capture and storage is general envisioned to be used in conjunction with gas- and coal-fired power plants.) of these modes of transport. etc. and cost of the mitigation alternatives across the seven categories presented in Table 3-1 vary widely. industrial processes. marine vessels. For the energy supply and delivery category. Carbon capture and storage (CCS). and carbon capture and storage. implementation ease.g. passenger loading. and distribution. Forestation. factors related to transport scheduling.62 • The Smart Grid: Enabling Energy Efficiency and Demand Response Fuel substitution (i. and solar photovoltaic. Waste Table 3-1 summarizes some of the primary strategies by sector. Energy supply and delivery 2. Transportation 3. geothermal energy. transmission and distribution.. The transport category includes strategies related to improving the fuel efficiency of on-road vehicles.
2007) Electric End-use Energy Efficiency 63 .Table 3-1. et al.. Potential Strategies to Mitigate Greenhouse Gas Emissions (Metz.
and reuse. and controlling other (non-CO2) greenhouse gas emissions. In addition. combined heat and power). expanded sanitation coverage. space cooling. and controlling non-CO2 greenhouse gas emissions. The industrial category consists of measures to improve the efficiency of facilities and processes. and generation and use of anaerobic digester gas. use of renewables. or electric vehicles. and/or landscape level carbon density. advanced incineration. space heating. The category of waste management is comprised of technologies to reduce greenhouse gas emissions as well as to avoid emissions. or switching to hybrid vehicles. with some of the work taking into account the economic and market potentials and some of the work focusing just on the technical potential. and appliances. livestock. fuel switching. hydrogen-powered fuel cell vehicles.g. For example. fuel switching. EPRI has analyzed .64 The Smart Grid: Enabling Energy Efficiency and Demand Response ing potential. Carbon capture and storage is also potentially feasible for large industrial facilities. There are numerous potential energy efficiency measures ranging from those that address the building envelope to those that address systems such as lighting. energy recovery (e. recycling. Encouraging modal shifting from less to more efficient modes of transport is another alternative. Emission avoidance methods consist of controlled composting. wastewater management. Mitigation alternatives for the agriculture sector pertain to energy efficiency improvements and land. the use of anaerobic digesters in manure management practices is also applicable to the general category of waste management. Several recent studies have estimated the potential of these strategies in reducing greenhouse gas emissions. landfill practice improvements. waste minimization. Forestry strategies are aimed at either reducing emissions from sources or increasing removals by sinks. bio-energy. Specific alternatives include maintaining or increasing forest area. and manure management. ventilation.. using bio-fuels. The development and use of biofuels is a cross-cutting mitigation strategy that also relates to energy supply. increasing off-site carbon stocks in wood products. Emission reduction approaches include recovery and utilization of methane (CH4). water heating. plug-in hybrid electric vehicles. and waste minimization. recycling and use of scrap materials. site-level carbon density. refrigeration. Mitigation strategies for residential and commercial buildings fall into three general areas: energy efficiency of buildings and systems. and fuel substitution.
Electric End-use Energy Efficiency 65 several of these mitigation opportunities to assess the technical potential for future carbon dioxide (CO2) emissions reductions. The following subsections summarize some recent estimates of the future potential of energy efficiency. A considerable amount of work has been undertaken in recent years to assess the energy efficiency potential. sustainable manner. specifically.e.com). the International Energy Agency (IEA) discusses two potential scenarios for the world’s energy future: the reference scenario and the alternative policy scenario (International Energy Outlook. and market barriers will be in place. 2006). Several recent studies have attempted to estimate the potential for energy efficiency improvements. and still others depend on accelerated technological developments or technology “leaps” to make alternatives viable. with a focus on electricity use. EPRI refers to this work as the “PRISM” analysis (see www. others count on expected technological advances (i. economic. IEA ESTIMATES In their World Energy Outlook 2006 (WEO). In addition. Many of the projections assume that mechanisms to remove technical. within the scope of the U. WHAT CAN BE ACCOMPLISHED? Energy efficient end-use technologies and practices are some of the most cost-effective. the costs associated with energy efficiency efforts have been compared with the costs of other strategies for meeting future energy needs in a clean. Many of them can be deployed faster and at lower cost than supply-side options such as new clean central power stations. Some of the approaches rely on technologies that are already available.epri. electricity sector. The reference scenario accounts for all government energy and climate policies and measures enacted or adopted as of the middle of 2006 in the projection of future energy .. near-term options for meeting future energy requirements. Results indicate that energy efficiency gains have the potential to contribute significantly to meeting future energy requirements in a relatively cost-effective and easily-deployable manner. emerging technologies). Energy efficiency is also environmentally-responsible.S.
7 by 2030 for the Alternative policy scenarios and by a factor of 2. energy efficiency improvements in the Alternative policy scenarios correspond to a global rate of decrease in energy intensity (energy consumed per unit of gross domestic product) of 2. and/or new technologies.7% per year in the reference scenario. therefore. the electricity demand is estimated to increase by a factor of 1. Much of this improvement over the reference scenario is in developing and transition economies where there is more potential for energy efficiency improvements.0 for the reference scenario. Still. Its projections. rather it looks at the potential for greater improvement and increased and faster penetration of existing technologies compared to the reference scenario. and sustenance of the oil and gas supplies within net energy-importing countries.672 TWh) than in the reference scenario (28. Breakthrough technologies are not included. which is a little less than China’s 2004 installed capacity. the global electricity demand (final consumption of electricity) in 2030 is estimated to be 12% lower in the Alternative policy scenarios (24. air conditioning. greater reliance on non-fossil fuels.) and one-third comes from improvements in the efficiency of industrial processes. The alternative policy scenario on the other hand accounts for all energy and climate policies and measures currently being considered. The latter scenario is associated with significantly lower energy use and a greater share of less carbon-intensive energy sources. the Alternative policy scenarios not take into account technologies that have yet to be commercialized. In general.1% per year over 2004 to 2030 for the Alternative policy scenarios compared with 1.093 TWh) mainly due to greater energy efficiency improvements (see Table 3 2). etc. the policies and measures included in the Alternative policy scenarios paint a cleaner energy picture. compared with the electricity demand in 2004 (14.376 TWh). The types of new measures included in the alternative policy scenario include further improvements in energy efficiency.66 The Smart Grid: Enabling Energy Efficiency and Demand Response use patterns through 2030. Relative to the reference scenario. This scenario does not take into account any future policies. In terms of electricity use. lighting. depict what is potentially possible in terms of reaching energy goals if we act right away to implement a set of policies and measures under consideration as of 2006. However. measures. Two-thirds of the improvements come from energy efficiency in residential and commercial buildings (more efficient appliances. Most . The savings in residential and commercial buildings alone equates to avoiding 412 GW of new capacity.
Comparison of Worldwide Electricity Demand in 2030 Projected by the WEO Reference Scenario and the Alternative Policy Scenario ———————————————————————————————— 2004 Electricity Demand 2030 Electricity Scenario) 2030 Electricity Difference between and Alternative Reference Policy Scenarios in 2030 3.9% per year between 1990 and 2004. India. the rate of energy efficiency improvement averaged 2% per year between 1973 and 1990 and then declined to an average of 0. Japan. In terms of the actual quantity of electricity savings. Table 3-2. specifically. Paris. .672 TWh Table 3-3 compares the electricity demand in 2030 of the two scenarios for selected regions. and Latin America. Canada. the United Kingdom.Electric End-use Energy Efficiency 67 of the increase in electricity demand is expected to be in developing countries.) (International Energy Agency. China leads with a savings of 814 TWh relative to the reference scenario. UNITED NATIONS FOUNDATION ESTIMATES In a 2007 report. The plan entails “doubling” the global historic rate of energy efficiency improvement to 2. Germany. the European Union.376 TWh ———————————————————————————————— Electricity demand is the final consumption of electricity. France: 2006. Source: World Energy Outlook 2006.5% per year by G8 countries between 2012 and 2030. Italy.093 TWh 24. 2007 and [G8 countries include Canada. as well as to other developing countries *The historic energy efficiency improvement rates quoted apply to a group of 14 IEA countries: Austria. France. International Energy Agency. the United Kingdom. and the United States.421 TWh (12%) Demand (Reference Demand (Alternative Policy Scenario) ———————————————————————————————— 14. (For reference. Finland. and South Africa). the Netherlands. Japan. Russia. France. (UN Foundation. Mexico. China. The largest percentage reductions relative to the reference scenario take place in Brazil. Italy. New Zealand. Norway. 28. China. the United Nations Foundation makes a more ambitious plan of action to improve energy efficiency. Germany. and the United States]). 2006)* The plan also calls for G8 countries to reach out to +5 nations (Brazil. Denmark. Sweden.
Comparison of Electricity Demand in 2030 Projected by the WEO Reference Scenario and the Alternative Policy Scenario. Selected Regions (International Energy Agency. International Energy Agency. France: 2006. Paris. . 2006) 68 The Smart Grid: Enabling Energy Efficiency and Demand Response Electricity demand is the final consumption of electricity.Table 3-3. Source: World Energy Outlook 2006.
If accomplished. Together. .9 trillion in new energy supply by G8 countries ($3 trillion globally). This level of energy efficiency would avoid $1. 2007) Energy Efficiency Potential in the U.2 trillion on a global basis) relative to the IEA’s reference scenario.5% per year an investment of $2. the G8+5 account for roughly 70% of global primary energy use. For example. The G8 countries represent 46% of global energy consumption and are economically best positioned to lead the way in addressing efficiency improvements that can then be followed by the developing countries. The rate of energy efficiency improvement proposed in the United Nations Foundation report is more aggressive than energy efficiency improvement rates referenced in other recent energy projection studies. Comparison of Annual Energy Efficiency Improvement Rates (UN Foundation. The economics of the United Nations Foundation plan are favorable.Electric End-use Energy Efficiency 69 to help them attain efficiency goals. The report estimates that to improve the rate of energy efficiency to a level of 2.3 trillion would be required by the G8 countries ($3.5% with rates assumed in the IEA’s Reference and Alternative Policy Scenarios.S. the net incremental investment required would be $400 bil- Figure 3-1. this rate of energy efficiency improvement would lower G8 total energy demand in 2030 by 22% relative to the IEA’s reference scenario and would return energy use to close to 2004 values for these countries. Therefore. Figure 3-1 compares the United Nations Foundation rate of 2.
energy efficiency policies and programs are assumed to encompass traditional energy efficiency measures as well as demand response efforts. Table 3-4 displays the potential energy efficiency impacts pertaining to annual energy reduction in the year 2010. DC: February 2006. For this sector. and efficient lighting and appliances. In addition to global-scale estimates.* Significant impacts are associated with energy efficiency programs in the residential. the realistic achievable potential would likely be less. (Note: in this context. 2006 and Keystone. which is equivalent to 5. U.). It also reflects the maximum achievable potential at each cost level. A fifth of the potential is likely to be realized in the residential sector. According to United Nations Foundation estimates. et al.) The results of the study are summarized in the following paragraphs. commercial. energy efficiency programs target high efficiency heating. ventilation and air conditioning (HVAC) programs. The total energy savings potential in 2010 is estimated to be close to 230 TWh. it provides savings relative to a reference state of no energy efficiency program activity. Washington. various entities have conducted assessments of the potential for energy efficiency at the country or regional level. Therefore. For example.70 The Smart Grid: Enabling Energy Efficiency and Demand Response lion by G8 countries ($200 billion globally). . improved building shell measures. 2003). The commercial sector is likely to offer the highest potential for energy saving opportunities (almost 50% of the total achievable potential is likely to be realized from the commercial sector). etc. improved lighting *The forecasted total electricity use for 2010 is 4155 TWh according to Annual Energy Outlook 2006. and industrial sectors. Energy Information Administration. energy security.5% of the forecasted electricity use for 2010. Department of Energy. EPRI along with Global Energy Partners and The Keystone Center recently estimated the potential for end-use electric energy efficiency to yield energy savings and peak demand reductions (Gellings. With Projections to 2030. A significant potential is likely to be achieved through improvements in end-use devices and enforcement of higher standards in new construction.S. other quantifiable benefits such as reduced consumer energy bills help to pay back this relatively low investment in roughly three-to-five years (not including the value of climate change mitigation. Office of Integrated Analysis and Forecasting. Residential sector energy efficiency programs target high efficiency air conditioners that exceed current federal standards.. The analysis eliminated effects of energy efficiency programs currently underway or likely to occur according to historical trends.
et al.S. End-Use Electric Energy Savings Potential in 2010 (TWh) Note EE is Energy Efficiency (Gellings. 2006) Electric End-use Energy Efficiency 71 ..Table 3-4. U.
In addition. peak summer demand impacts are driven primarily by demand curtailment programs and energy efficiency programs targeting motors and process uses.* Similar to energy savings.05/kWh.S. A very large part of this potential is likely to be realized from new construction activities. Office of Integrated Analysis and Forecasting. The low-cost portion of the supply curve offers many potential low-cost options for improving efficiency. savings of approximately 150 TWh are achievable for a cost of $0. Residential sector peak summer demand impacts are represented by direct load control programs and energy efficiency programs. Washington. Analysis results show that savings of nearly 40 TWh can be achieved at a cost of less than $0. which is equivalent to 7. Commercial sector peak summer demand impacts are represented by demand curtailment programs that serve to reduce loads during peak demand periods through the use of automated load control devices and energy efficiency programs. savings of nearly 210 TWh can be achieved for less than about $0. U.5% of the forecasted total electricity capacity for 2010. The industrial sector demand reduction potential is close to that of commercial sector. The curve is constructed by building up the savings from potential energy efficiency measures beginning with low-cost measures and continuing upward to high-cost measures. The remaining 30% of the potential is likely to be achieved from the industrial sector where energy efficiency programs target premium efficiency motors and efficiency improvements in manufacturing processes. Similarly. The supply curve shows the cost per kWh saved versus the amount of energy savings achievable at each level of cost.20/kWh. Typical efficiency improve*The forecasted total electricity capacity for 2010 is 988. Department of Energy. The commercial sector is forecasted to have the highest contribution to peak demand reductions (almost 42% of total demand reduction). Energy Information Administration.72 The Smart Grid: Enabling Energy Efficiency and Demand Response systems and high efficiency equipment such as refrigeration and motors. With Projections to 2030.4 GW according to Annual Energy Outlook 2006. Figure 3-2 is an energy efficiency supply curve constructed for this analysis.10/kWh or less. . the residential sector is likely to contribute a fifth to the overall demand reduction impact. Table 3-5 displays the impacts pertaining to peak summer demand reductions for the year 2010. DC: February 2006. as well as lighting improvements. which yield the majority of the impacts mainly resulting from HVAC and lighting programs.
Table 3-5.. et al. U. Peak Summer Demand Reduction Potential in 2010 (GW) Note EE is Energy Efficiency (Gellings. 2006) Electric End-use Energy Efficiency 73 .S.
and advanced lighting systems for industrial. et al.S. advanced refrigeration in commercial buildings. The assessment shows that there is a substantial amount of cost- . advanced commercial (building-integrated) cooling and refrigeration systems. additional energy savings include commercial lighting improvements and efficiency improvements in industrial motors and drives as well as electro-technologies.05/kWh to $0. Supply Curve for U. and HVAC tune-ups and maintenance. Other technologies that can be deployed at a cost of $200/kW to $400/kW include direct load control for residential air conditioning. End-Use Electric Energy Savings. commercial. residential lighting improvements.05/kWh. 2006) ments include removal of outdated appliances.. commercial building tune-ups and maintenance. the appropriate metric is the cost of peak demand in units of $/kW. Examples of peak demand savings opportunities that are available for less than $200/kW include audits and weatherization of residential building shells. and residential applications. instead of $/kWh. and time based tariffs for commercial and industrial customers. Here. A similar analysis can be used to estimate the costs for reducing peak demand (Figure 3-3).74 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 3-2. 2010 (Gellings. weatherization of the building shell. For a cost of $0.10/kWh. All these technologies can be deployed for a cost of less than $0.
S.” Edison Electric Institute Executive Symposium for Customer Service and Marketing Personnel.W.S.Electric End-use Energy Efficiency 75 Figure 3-3. Group II Load Management Studies. and effective policies and programs at the international and local levels as well as extensive improvements in technology. 2010 (Gellings. References Testimony of C. Peak Demand Reduction. 2006) effective energy efficiency potential still achievable in the U. et al. November 1982. Gellings. State of New Jersey—Board of Public Utilities—Appendix II. Gellings.. The opportunity for savings is highest in the residential and commercial sectors and is somewhat lower in the industrial sector. concerted. January 1981. . Supply Curve for U. Each of these efforts is part of what should be considered as an overall approach to deploying a smart grid. CONCLUSION Improving energy efficiency will require deliberate. All of the studies summarized here require that specific sets of policies and programs be implemented in order to maximize the potential for energy efficiency improvement. C. “Demand-side Planning.W.
United Kingdom and New York. Cambridge. United Nations Foundation. G. Electric End-Use Energy Efficiency Potential. The Keystone Dialogue on Global Climate Change. USA: 2007. Paris. Washington. B. France: 200 Gellings. Realizing the Potential of Energy Efficiency. Energy Use in the New Millennium: Trends in IEA Countries. International Energy Agency.” Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. C. NY.. R. R. Paris. Metz.. Issue 9. DC: 2007. Final Report. L. Dave. D. Vol. . November 2006. Meyer (eds). 19. Davidson. Targets. and Ghosh.” The Electricity Journal. Cambridge University Press. Bosch. International Energy Agency. Policies. R. A. CO: May 2003. Wikler. “Assessment of U. The Keystone Center.. World Energy Outlook 2006. P. France: 2006. O.76 The Smart Grid: Enabling Energy Efficiency and Demand Response “Climate Change 2007: Mitigation. and Measures for G8 Countries.S.W.
the systems grew as true demand for electricity grew and as development spread. As a result. Albeit the most complex machine ever built. it is largely comprised of simple parts—transformers. on average in most developed countries. For example. the electrical system. remain based on technologies that have been largely unchanged for 50 years. and of the support of the Galvin Electricity Initiative to this section.Chapter 4 Using a Smart Grid to Evolve The Perfect Power System* Much has been written about optimizing power systems. But mostly the power system engineer’s thinking is mired by two anchors: the existing system and the view that technical solutions regarding power systems are bounded by central generation on one end and the meter at the consumer’s facility at the other. The world’s electricity infrastructure. consisting of various sources of generation. electric service reliability to homes and businesses is far less than perfect. Improvements are continually suggested and evaluated—some eventually implemented. After electric utilities and power systems were created out of the need to supply arc lamps and electric streetcars in urban areas. And *The author wishes to acknowledge the contributions of Kurt E. In addition. circuit breakers. even while on. has continued to deteriorate. While some sensors have been added. President Emeritus of the Electric Power Research Institute. 77 . over the last ten years every consumer. There are now more perturbations in the quality of power than ever before. has evolved through time. and to a certain extent its design criteria. the power system is bolted together. mechanically controlled and monitored by reactive computer simulation that is often 50 times slower than its operational movements. Throughout this expansion. cables and conductors. a set of transmission networks and a variety of distribution systems. Yeager. has consistently been without power for 100 to 200 minutes or more each year. the quality of that service.
but a Perfect Power System unleashing self-organizing entrepreneurs whose innovations will greatly increase the value of electricity in the 21st century. engineers need to deploy the most efficient. refrigeration and the many other applications. In a project sponsored by the Galvin Electricity Initiative. Even less perfection is evident in the end-uses of the system—the energy consuming devices.. environmentally friendly devices practicable and integrate them into building and processing systems that allow perfection to extend to the point of end-use. Bob Galvin. former CEO of Motorola and an industry icon. Traditional power system planners and practitioners will find this perfection concept hard to embrace. So what if you could start with an absolutely clean sheet of paper—what if there was no power system and we could design one—a smart grid—using the best existing and evolving technology? This chapter takes precisely that perspective. Inc. the founders of Motorola Corporation have enabled researchers to develop a powerful vision. and capable of challenging the best minds in the industry. to determine the path to the perfect system. must be the design principle. light. based on the consumer’s perspective. Indeed to achieve perfection in electric energy service. motive power. Delivering perfect electric energy service seems nearly impossible and appears inherently expensive—an impractical notion to those constrained by the conventional wisdom of the power sector. THE GALVIN VISION—A PERFECT POWER SYSTEM The design of the perfect power system must start with the consumer’s needs and provide absolute confidence. convenience and choice in the services provided so as to delight the consumer. crystallized the framework that was to be developed by clarifying that: “My vision is not power system based on requirements being driven by future customer needs for end-use technologies. appliances and systems which convert electricity into heat. one that is unconventional.78 The Smart Grid: Enabling Energy Efficiency and Demand Response this at a time when consumers are increasingly using digital devices as society moves toward a knowledge-based economy. . Perfection.
As a result. it provides elements of perfection that enable. Dispersed perfect systems respond to consumer’s demand for perfection. in turn. The research team used this broad array of technology development opportunities to establish general design criteria for the perfect power system. Once distributed perfect systems are achieved. in concert with the vision and inspiration of Bob Galvin. This established the groundwork for subsequent tasks and the eventual development of the possible system configurations and associated nodes of innovation. environmentally friendly systems and cost control. Not only does enhanced performance of end-use devices improve the value of electricity. but also accommodate increasing consumer demands for independence. appearance. the research team identified four potential system Configurations associated with this path to the Perfect Power System: • • • • Perfect Device-level Power Building Integrated Power Distributed Power Fully Integrated Power: A Smart Grid This path started with the notion that increasingly consumers expect greater performance from end-use devices and appliances. and any definition of a perfect system has to be considered from the . they can be integrated with technologies that enable a fully integrated perfect power system to exist. The focus of the system is on the service it provides to the energy users. Defining the Perfect Electric Energy Service System The research team used panels of energy experts to define a perfect electric energy service system in terms of what it would accomplish: The Perfect Power System will ensure absolute and universal availability of energy in the quantity and quality necessary to meet every consumer’s needs. he defined a clear and unambiguous measure of value— “the system does not fail. Dispersed systems or building integrated power systems can in turn be interconnected to form distributed perfect systems. literally took a “clean sheet of paper” to the challenge of absolutely meeting the criteria of perfection.Using a Smart Grid to Evolve the Perfect Power System 79 Further.” To define the path to a perfect electric energy service system. but also once perfection at this level is defined. a dispersed perfect system. the Galvin Initiative research team. pride.
specific area needs Be able to meet consumer needs at a reasonable cost with minimal resource utilization and minimal environmental impact (consumer needs include functionality. we can now focus on the various potentially perfect power system configurations envisioned by the Galvin Initiative. 7. In turn.80 The Smart Grid: Enabling Energy Efficiency and Demand Response perspective of the energy users. and usefulness) Enhance the quality of life and improve economic productivity • Design Criteria The design criteria that would be employed to meet these performance specifications must address the following key power system components or parameters: 1. 3. secure. 4. It is also important to recognize that nodes of innovation are required to enable and achieve perfection. 2. Path to the Perfect Power System Now that the basic specifications and criteria for the perfect power system have been articulated. the perfect power system must meet the following overarching goals: • • • • Be smart. End-Use Energy Service Devices System Configuration and Asset Management System Monitoring and Control Resource Adequacy Operations Storage Communications The end-use devices are the starting point in the design of the perfect power system. They are the point of interface with the energy user and the mechanism by which the energy user receives the desired service. self-correcting. portability. comfortable space conditioning (heating or cooling). and self-healing Sustain failure of individual components without interrupting service Be able to focus on regional. 5. 6. such as illumination. and entertainment. self-sensing. key technologies are . In order to provide service perfection to all energy users. hot water.
Each of these configurations can essentially be considered a possible structure for the perfect power system in its own right. it provides elements of perfection that enable. in turn be interconnected and integrated with technologies that ultimately enable a fully integrated perfect power system. Not only does portability enable a highly mobile digital society. and quality or service value improvements to be attained. a localized perfect system. in turn. and then to integrate local systems as necessary or justified for delivering perfect power supply and services. In effect. but also once perfection in portability is defined. DEVICE–LEVEL POWER SYSTEM The first level of development for the perfect power system is what we will call the “device-level” power system. flexibility. and intelligence for optimization of energy use and energy management at the local level. but each stage logically evolves to the next stage based on the efficiencies. Local systems can in turn be integrated into distributed perfect systems. This scenario takes advan- . environmentally friendly service and cost control. Localized perfect systems can also accommodate increasing consumer demands for independence. appearance. a distributed power system and eventually to a fully integrated power system as reflected in Figure 4-2. Distributed perfect systems can. Figure 4-1 summarizes each of these system configuration stages. these potential system configuration stages build on each other starting from a portable power system connected to other portable power systems which then can evolve into a building integrated power system. This path started with the notion that increasingly consumers expect perfection in the end-use devices and appliances they have.Using a Smart Grid to Evolve the Perfect Power System 81 the basic building blocks needed to achieve the necessary innovative functionality advancements. convenience. OVERVIEW OF THE PERFECT POWER SYSTEM CONFIGURATIONS The basic philosophy in developing the perfect power system is first to increase the independence.
therefore.82 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 4-1. biosciences. Path to the Perfect Power System (www. not dependent on a massive power delivery and generation infrastructure that has many possible failure scenarios. Advantages of the Perfect Device-level Power System and Relevant Nodes of Innovation The perfect device-level power system has many advantages: • The reliability and derivative quality of equipment and processes is determined locally and is. sensors and advanced materials. This scenario has only modest needs for communication between different parts of the system as it essentially represents the capability of end-use technologies to operate in an isolated state and on their own with extremely convenient means of charging their storage systems from appropriate local energy sources. .galvinpower.org) tage of advancements in advanced technologies including nanotechnology.
other sources) can easily be integrated locally as an energy source for the device-level power systems. can be utilized immediately without significant issues of control and integration with the power delivery system. storage. etc. • • • .org) • It is the most flexible system configuration. The system is not dependent on any existing infrastructure (and. is ideal for developing systems and remote power requirements) but is also applicable to systems that are already developed (to take advantage of the existing infrastructure as an energy source for the device-level systems)..Using a Smart Grid to Evolve the Perfect Power System 83 Figure 4-2. There are tremendous opportunities for energy savings through local optimization of powering requirements and miniaturization of technologies.galvinpower. Renewables (solar. therefore. The Perfect Electric Energy System—System Configurations and Nodes of Innovation (www. wind. Innovations in end-use technologies.
In this scenario. Advantages of the Building Integrated Power System & Relevant Nodes of Innovation Integration at the local level provides a number of advantages over device-level power systems (at the cost of additional infrastructure and communication requirements needed for this integration): • Energy availability can be optimized across a larger variety of energy sources. An example of a device-level power system is provided in Figure 4-3. • • One conceptual graphic for a building integrated power system is shown in Figure 4-4. a commercial building. resulting in improved economics of power generation. This could be an industrial facility. BUILDING INTEGRATED POWER SYSTEMS The “building integrated” power system is the next level of integration after the device-level power systems. This illustrates various portable devices and inductive charging as elements of portable power. Still allows for local control and management of reliability at the local level. Creates an infrastructure for more optimum management of overall energy requirements (heating. or a residential neighborhood. power) than is possible with the portable system. .84 The Smart Grid: Enabling Energy Efficiency and Demand Response Eventually device-level power systems may need to be connected to building integrated or distributed power systems for bulk energy supply. The DC powered house combines many of the nodes of innovation required in the device-level power system and combines them into a single isolated power system such as a house or office complex. energy sources and a power distribution infrastructure are integrated at the local level. a campus of buildings. cooling.
galvinpower.Using a Smart Grid to Evolve the Perfect Power System 85 Figure 4-3. Device-level Power (www.org) .
org) .86 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 4-4.galvinpower. Building Integrated (Localized) Power (www.
This additional flexibility is enhanced by a use of communications. Additionally. These more centralized systems can incorporate both generation and storage systems. reliability and power quality will be assured through technologies in individual devices and local systems. This system still has limited needs for extensive power delivery grid infrastructures. availability of central generation and storage. The concept of the distributed system is to optimize performance locally without complete dependence on the bulk power system infrastructure (this maximizes reliability). but also considering the availability of power from other sources besides the local systems. The structure also can result in improved reliability by allowing for energy supply alternatives. A real-time system can optimize both energy and reliability through the interconnection of the local systems. but being able to take advantage of the overall infrastructure to optimize energy efficiency and energy use. but interconnection of local systems allows sharing of generation and storage capabilities over wider areas for more efficient energy management. In this configuration. storage systems availability. society costs of different sources of generation. The main communications and control is still expected to be localized.Using a Smart Grid to Evolve the Perfect Power System DISTRIBUTED POWER SYSTEMS 87 The distributed power system involves interconnection of different localized systems to take advantage of power generation and storage that can support multiple local systems. Advantages of the Distributed Power System & Relevant Nodes of Innovation The main advantage of the distributed configuration is that it provides for additional flexibility in power generation and storage solutions. these power quality and reliability technologies will receive priority at the local . importance of the energy to different devices and systems.). This naturally results in an increase in infrastructure complexity. etc. Like distributed generation. as well as centralized technologies. and the energy management can be optimized at the local level. energy performance can be optimized through a market structure where appropriate values are placed on all-important quantities (reliability. control hierarchy and computational ability. and reliability and power quality management technologies.
sensors. reliability and performance.88 The Smart Grid: Enabling Energy Efficiency and Demand Response level in this scenario with the added ability to export services or take advantage of some centralized services as appropriate to optimize overall performance. NODES OF INNOVATION In addition to outlining the conceptual development of plausible perfect power system configurations it is equally important to identify “nodes of innovation” that are essential and contribute to the development of the perfect system configuration. plus any number of possible electric power systems technologies and configurations. the proliferation of existing devices now available—but having limited market penetration today. although the opportunity for DER to be included in the optimization is inherent in the design. The Galvin Research Team selected the following nodes of in- . communications and computational ability that provides for an optimal power system that is self healing and will not fail. The design implies full flexibility to transport power over long distances to optimize generation resources and the ability to deliver the power to load centers in the most efficient manner possible coupled with the strong backbone. The primary difference between this configuration and the distributed power configuration is the inclusion of a centralized generation sources and the possibly more modest use of distributed energy resources (DER). building systems. Figure 4-5 provides a visual representation of a distributed configuration that integrates renewable and fuel cell technologies. FULLY INTEGRATED POWER SYSTEM: THE SMART GRID The final level of development involves a configuration that enables the complete integration of the power system across wide areas into a smart grid. Figure 4-6 provides a simple diagram of a fully integrated perfect power system which integrates power electronics. These nodes can include the evolution of entirely new end-use devices. The DC distribution described in the localized system still provides a foundation for implementation of local technologies for improved quality.
galvinpower.org) .Using a Smart Grid to Evolve the Perfect Power System 89 Figure 4-5. Distributed Power (www.
90 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 4-6.galvinpower. Fully Integrated Power (www.org) .
None of the perfect system configurations are capable of being deployed today without the evolution of one or more nodes of innovation being enhanced. Typically this debate is mired in a mental framework that evolves from the traditional electric industry.Using a Smart Grid to Evolve the Perfect Power System 91 novation that will be critical for developing the perfect electric energy systems described in the previous section. Starting from the beginning. CONCLUSION This chapter lays out possible configurations that may lead researchers and practitioners to stimulate thinking about evolving improved power systems resulting in a smart grid. It was this belief that once those systems had evolved. engineers are taught to design. Future work is needed to study those technologies that may be essential to portable. These nodes can be most enhanced by certain elements of related technologies that may be part of those nodes. Power system engineers continue to debate the best approach to optimizing existing electric infrastructures in the developed world and planning and deploying new infrastructures in developing countries.org.galvinelectricity. dispersed or distributed configurations. the perfect fully integrated configuration would literally self-organize. The eight critical nodes of innovation identified include: • • • • • • • Communications Computational Ability Distributed Generation Power Electronics and Controls Energy Storage Building Systems Efficient Appliances and Devices Sensors The reader should note that there are a substantial number of key technologies that appear to have the greatest probability of advancing one or more of the candidate Perfect Systems. For more information on the perfect power system visit the Galvin Electricity Initiative Website at www. analyze and operate bulk .
2005. Time will tell. galvinpower. Phase I Report: Technology Mapping.org. . The result may well be the evolution of new systems—or it may be the augmentation of existing systems. This chapter offers an entirely new approach. (www.org).92 The Smart Grid: Enabling Energy Efficiency and Demand Response power systems. References Phase I Report: The Path to the Perfect Power System. Naturally.galvinpower. Scanning and Foresight. 2005. this approach is reinforced as graduate engineers enter industry. www. By taking a clean sheet of paper and approaching the design from a consumer perspective it is possible to unleash innovation and offer substantive improvement in quality and reliability.
This pioneering system. decreases to zero. 93 . Any device that relies on batteries—a flashlight. Direct current (DC) is a continuous flow of electricity in one direction through a wire or conductor. a portable CD player. and the rate at which it repeats is called the frequency of the current. When represented graphically. This is expressed as 60 hertz (Hz). It flows from a high to a low potential. the hertz being a unit equal to one cycle per second. most notably that power typically could not be practically transmitted beyond a distance of about one mile. for example. in a battery. Edison’s power plants had to be local affairs. usually flat. Direct current is created by generators such as fuel cells or photovoltaic cells. sited near the load. DC POWER: AN HISTORICAL PERSPECTIVE Early power systems developed by Thomas Edison generated and delivered direct current (DC). It builds to a maximum voltage in one direction.Chapter 5 DC Distribution & the Smart Grid Thomas Edison’s nineteenth-century electric distribution system relied on direct current (DC) power generation. DC voltage appears as a straight line. from a positive to a negative pole. DC power generation was limited to a relatively low voltage potential and DC power could not be transmitted beyond a mile. lightning. AC VS. and use. or cycle. This complete sequence. builds up to a maximum in the opposite direction.S. or the load had to be brought close to the generator. DC power systems had many limitations. the AC power provided to a home outlet has a frequency of 60 cycles per second. largely because in the 19th century. and by static electricity. and then returns to zero once more. turned out to be impractical and uneconomical. and batteries. However. repeats. In the U. delivery. a laptop computer—operates on direct current.. however. Alternating current (AC) is electricity that changes direction at regular intervals.
The distance limitation of direct current and the difficulties of changing voltages proved critical factors in abandoning DC systems in favor of those based on AC. Alternating current can be produced by large generators.—which included royalties from his patents on direct current systems—was to deploy relatively small scale.94 The Smart Grid: Enabling Energy Efficiency and Demand Response Moreover. Edison’s concept for electrification of the U. because changing the voltage of DC current was extremely inefficient. If the local plant failed. He also electrocuted numerous cats and dogs procured from neighborhood boys.S. “My personal desire would be to prohibit entirely the use of alternating currents. With DC systems. which powered a part of New York City’s financial district. and the voltage of alternating current can be stepped up or down for transmission and delivery. Another limitation was that DC current incurred considerable power losses. its superiority to DC for transmission and distribution was compelling. delivery of power with direct current in Edison’s time meant that separate electric lines had to be installed to supply power to appliances and equipment of different voltages. power had to be generated close to where it was used. This resulted in problematic reliability and economics. an economically and physically impractical approach. who also worked for Westinghouse— proved to be far superior technically and economically. which he claimed would be dangerous because of the high voltage at which power would need to be transmitted over long distances. But despite proving that alternating current could be an effective means of electrocuting these hapless creatures. 1889. The voltage of AC could be stepped up or decreased to enable long distance power transmission and distribution to end-use equipment. Jr. They are unnecessary as they are dangerous.. Edison fought vociferously against the use of alternating currentbased systems. Scientific American He even went so far as to demonstrate the danger of AC by using it to electrocute a Coney Island elephant named Topsy who had killed three men. the entire system . individual DC plants to serve small areas—such as the Pearl Street Station. But George Westinghouse’s polyphase alternating current (AC) power system—invented by Nikola Tesla and used with transformers developed by William Stanley.” —Thomas Edison.
which would improve load factor and enable more economical operation of the generation plants. Stanley first demonstrated the potential of transformers to enable AC transmission at Main Street in Great Barrington. lighting a string of thirty series-connected 100-volt incandescent lamps. a greater diversity of load was obtained. Transformers do not work with DC power. Effective transformers were first demonstrated in 1886 by William Stanley of the Westinghouse Company.58¢ per kWh. Transformers Transform the Power Delivery System By using transformers. the cost of energy was high—often more than $1 per kWh when adjusted for inflation to present dollars (2005)—compared to an average cost for residential electricity today of 8. A total of six step-down transformers were located in the basements of some Main Street buildings to lower the distribution to 100-volts.DC Distribution & The Smart Grid 95 was down. Transformers that could efficiently adjust voltage levels in different parts of the system and help minimize the inherent power losses associated with long-distance distribution were a critical enabling technology that led to today’s AC-dominated power distribution system. the voltage can be stepped up to high levels so that electricity can be distributed over long distances at low currents. Wires were run from his “central” generating station along Main Street in Great Barrington. According to the Institute of Electrical and Electronics Engineers (IEEE) History Center. then the adjacent town would be available to pick up the load. Engineers wanted to Interconnect systems to improve reliability and overcome the economic limitations of DC electrical systems. Massachusetts. He demonstrated their ability to both raise and lower voltage by stepping up the 500-volt output of a Siemens generator to 3000-volts. fastened to the elm trees that lined that thoroughfare. And because initial power systems were devoted to lighting loads and systems only generated power at times of high usage. and hence with low losses. In addition. A total of twenty . which made long distance transmission essential. and then stepping the voltage back down to 500-volts. and therefore made alternating current essential. by interconnecting isolated systems. Another major driver was the desire to make use of hydroelectric power sources located far from urban load centers. If one area’s power were out because of a problem at the generator.
Stanley’s demonstration of raising the generator voltage to 3000volts and then back down again was exactly the same concept as employed in present day power systems where a “generator step-up” transformer is used to raise the system voltage to a very high level for long distance transmission. whether it should be direct or alternating current. if so. Years of study and heated debate preceded the start-up of the first Niagara Falls Power Station in the summer of 1895. The success of the giant polyphase alternating current generators made clear the directions that electric power technology would take in the new century. Stanley’s installation in Great Barrington was the first such system to include all of the basic features of large electric power systems as they still exist more than one hundred years later. Here electrical engineers were confronted with one of the great technical challenges of the age—how to harness the enormous power latent in Niagara’s thundering waters and make it available for useful work. and then “large substation” transformers are used to lower the voltage to some intermediate level for local distribution. such as hydroelectric dams. Similar alternating current systems that use transformers eventually replaced Thomas Edison’s direct current systems. Centralization Dictates AC Instead of DC Other factors led to the preference for AC power transmission instead of DC power delivery—most notably a desire for large-area grids relying on centralized power plant. Niagara Falls represented a showplace of a very different sort. Such development relied not only on transformers. and toward systems based upon increasingly larger-scale central-station plants interconnected via . In the 25 years following the construction of the Niagara Falls Power Station. various technological innovations and other factors led away from the early small-scale DC systems. as engineers and financiers argued about whether electricity could be relied on to transmit large amounts of power the 20 miles to Buffalo and. Having a transmission and distribution system that could provide hydro-electricity to cities or to remotely located industries such as gold or silver mines in the Rocky Mountains was also an economic imperative. but on development of polyphase alternating current generators per the Institute of Electrical and Electronics Engineers (IEEE).96 The Smart Grid: Enabling Energy Efficiency and Demand Response business establishments were then lighted using incandescent lamps.
Although high-voltage direct current (HVDC) is now a viable means of long-distance power transmission and is used in nearly a 100 applications worldwide. Now cities and towns could be interconnected. and why AC originally prevailed.S.) Despite a vigorous campaign against the adoption of alternating current. In addition to technical and market forces. as this would be wildly impractical. alternating current (AC) distribution was far superior for the needs of a robust electrical infrastructure.DC Distribution & The Smart Grid 97 transmission lines that carried alternating current. But a new debate is arising over AC versus DC: should DC power delivery systems displace or augment the AC distribution system in buildings or other small. power delivery. During this period. One of the most important is that an increasing number . transmission voltages as high as 150 kV were being introduced. and by the 1970s. and deliver electricity in the form of alternating current. more than 95% of all electric power being sold in the U. the voltage of AC could be stepped up with relatively simple transformer devices for distance transmission and subsequently stepped down for delivery to appliances and equipment in the home or factory. (See the section AC versus DC: An Historical Perspective for more on the attributes of AC and DC power. campus-like groups of buildings. which could be generated at large central plants for high-voltage bulk delivery over long distances. As a result. Facilities such as data centers. AC won out. and today utilities generate. Edison could not overcome the shortcomings of his DC system. no one is advocating a wholesale change of the infrastructure from AC to DC. Public policy and legislation encouraged the movement to larger centralized systems. Several converging factors have spurred the recent interest in DC power delivery. and power could be shared between areas. and end-use loads may come to fruition—at least for some types of installations. And Nikola Tesla’s invention of a relatively simple AC induction motor meant end users needed AC. the government also played a role in development of centralized power systems and thus reliance on AC transmission. was through large centralized power systems. distributed applications? Edison’s original vision for a system that has DC generation. Unlike DC power. and so relatively large amounts of power could be transmitted efficiently over long distances. transmit. or building sub-systems may find a compelling value proposition in using DC power.
So why not a DC power distribution system as well? Why not eliminate the equipment that converts DC power to AC for distribution. equipment operates on DC. deployment of DC power delivery systems as part of AC/DC “hybrid” buildings—or as a DC power micro-grid “island” that can operate independently of the bulk power grid—could enhance the reliability and security of the electric power system. . BENEFITS AND DRIVERS OF DC POWER DELIVERY SYSTEMS Due. Building electrical systems are fed with AC that is converted to DC at every fluorescent ballast. in part. meaning that 25 to 35% of all the energy consumed is wasted. requiring conversion from AC sources. then back again to DC at the appliance? Advocates point to greater efficiency and reliability from a DC power delivery system. and lower operating costs. About half the losses are from AC to DC conversions.98 The Smart Grid: Enabling Energy Efficiency and Demand Response of microprocessor-based electronic devices use DC power internally. Eliminating the need for multiple conversions could potentially prevent energy losses of up to 35%. to the interest in the smart grid. the rest from stepping down DC voltage in DC to DC conversions. In a larger context. the specter of several potential benefits are driving newfound interest in DC power delivery systems: Increasingly. Another factor is that new distributed resources such as solar photovoltaic (PV) arrays and fuel cells produce DC power. computer system power supply. “DC is the blood of electronics. Less waste heat and a less complicated conversion system could also potentially translate into lower maintenance requirements. longer-lived system components. and other electronic device. converted inside the device from standard AC supply. and batteries and other technologies store it. The power supplies that convert high-voltage AC power into the low-voltage DC power needed by the electronic equipment used in commercial buildings and data centers typically operate at roughly 65% to 75% efficiency. All microprocessors require direct current and many devices operate internally on DC power since it can be precisely regulated for sensitive components. As one specialty electronics manufacturer put it.” AC-DC conversions within these devices waste power.
Other devices can also be suited to DC output. and ultra capacitors) produce energy in the form of DC power. Considered in aggregate. flywheels and capacitors store and deliver DC power. transit buses. One of the most promising potential applications of DC power delivery is in data centers. Even hybrid vehicles such as the Toyota Prius could serve as DC generators in emergencies with the right equipment to connect them to the electrical system. Distributed generation systems produce DC power. The energy losses entailed in converting DC to AC power for distribution could be eliminated with DC power delivery. such as microturbines and wind turbines. These batteries store DC power. so optimization of designs with DC power delivery may help spur adoption and efficient operation. so charging them with electricity from solar photovoltaic arrays and other distributed sources could reduce reliance on gasoline. enhancing security and emergency preparedness. Likewise. an increasing number of portable gadgets such as cell phones and personal digital assistants (PDAs) require an AC-DC adapter. enhancing efficiency and reliability and system cost-effectiveness. and commercial fleets. This again helps avoid unnecessary conversions between AC and DC. which also results in power losses during conversion.DC Distribution & The Smart Grid 99 Simply getting rid of the losses from AC to DC conversion could reduce energy losses by about 10 to 20%. EPRI Solutions estimated that the total lifecycle cost of PV energy for certain DC applications could be reduced by more than 25% compared to using a conventional DC to AC approach—assuming that the specific end-use applications are carefully selected.2 The costs of new distributed generation such as PV arrays are still high. a pressing need. DC power delivery could potentially enhance energy efficiency in data centers. Storage devices such as batteries. Many distributed generation sources such as photovoltaic cells and fuel cells— and advanced energy storage systems (batteries. For instance. flywheels. which have . DC power could help power hybrid automobiles. Plug-in hybrid vehicles can go greater distances on electricity than today’s hybrids since they have larger batteries. the millions of AC to DC conversions necessitated for the operation of electronics extract a huge energy loss penalty.
The Smart Grid: Enabling Energy Efficiency and Demand Response
densely packed racks of servers that use DC power. In such centers, AC is converted to DC at the uninterruptible power supply, to facilitate storage, then is converted again to push out to the servers, and is converted one more time to DC at each individual server. These conversions waste power and generate considerable heat, which must be removed by air conditioning systems, resulting in high electricity costs. In a 10–15 megawatt (MW) data center, as much as 2–3 MW may be lost because of power conversions. As these centers install ever more dense configurations of server racks, DC power delivery systems may be a means to reduce skyrocketing power needs. Improved inverters and power electronics allow DC power to be converted easily and efficiently to AC power and to different voltage levels. Component improvements enable greater efficiency than in the past, and improve the economics of hybrid AC/DC systems. Although improved electronics also enhance AC-only systems, such enabling technology makes the DC power delivery option feasible as well. The evolution of central power architecture in computers and other equipment simplifies DC power delivery systems. At present, delivering DC to a computer requires input at multiple voltages to satisfy the power needs of various internal components (RAM, processor, etc.) Development of a central power architecture, now underway, will enable input of one standardized DC voltage at the port, streamlining delivery system design. DC power delivery may enhance micro-grid system integration, operation, and performance. A number of attributes make DC power delivery appealing for use in micro-grids. With DC distribution, solidstate switching can quickly interrupt faults, making for better reliability and power quality. If tied into the AC transmission system, a DC power micro-grid makes it easy to avoid back-feeding surplus generation and fault contributions into the bulk utility system (by the use of a rectifier that only allows one-way power flow). In addition, in a low-voltage DC system, such as would be suitable for a home or group of homes, a line of a given voltage rating can transmit much more DC power than AC power. Of course, while DC circuits are widely used in energy-consuming devices and appliances, DC power delivery systems are not commonplace, and therefore face the obstacles any new system design or
DC Distribution & The Smart Grid
technology must overcome. For any of the benefits outlined above to be realized, testing, development, and demonstration are needed to determine the true potential and market readiness of DC power delivery. POWERING EQUIPMENT AND APPLIANCES WITH DC Many energy-consuming devices and appliances operate internally on DC power, in part because DC can be precisely regulated for sensitive components. An increasing number of devices consume DC, including computers, lighting ballasts, televisions, and set top boxes. Moreover, if motors for heating, ventilating, and air conditioning (HVAC) are operated by variable frequency drives (VFD), which have internal DC buses, then HVAC systems that use VFDs could operate on DC power. Numerous portable devices like cell phones and PDAs also require an AC-DC adapter. As discussed above, by some estimates the AC-DC conversions for these devices waste up to 20% of the total power consumed. Equipment Compatibility EPRI Solutions examined the compatibility of some common devices with DC power delivery in 2002: • • • • • • Switched mode power supplies, including those for computers (lab test) Fluorescent lighting with electronic ballasts Compact fluorescent lamps (lab test) Electric baseboard and water heating units Uninterruptible power supplies (UPS) Adjustable speed motor drives
These devices represent a large percentage of the electric load, and EPRI Solutions’ preliminary assessments show that each could be potentially powered by a DC supply. Although additional testing is needed to determine the effect of DC power on the long-term operation of such equipment, results do indicate the feasibility of delivering DC power to these devices. Switched-mode Power Supply (SMPS)—Switched-mode power supply (SMPS) technology is used to convert AC 120 V/60 Hz into the
The Smart Grid: Enabling Energy Efficiency and Demand Response
DC power used internally by many electronic devices. At the most basic level, an SMPS is a high frequency DC-DC converter. Many opportunities exist to use DC power with SMPS-equipped equipment since SMPS technology is found in many electronic devices including desktop computers, laptop computers with power adapters, fluorescent lighting ballasts, television sets, fax machines, photocopiers, and video equipment. Although AC input voltage is specified for most of the electronic devices that have SMPS, in some cases, this equipment can operate with DC power without any modification whatsoever. Also, in many instances, the location on the SMPS where AC is normally fed could be replaced with DC. Power Supplies for Desktop and Laptop Units—According to research on power supply efficiency sponsored by the U.S. Environmental Protection Agency and the California Energy Commission, as of 2004, there were nearly 2.5 billion electrical products containing power supplies in use in the U.S., with about 400 to 500 million new power supplies sold each year. The total amount of electricity that flowed through these power supplies in 2004 was more than 207 billion kWh, or about 6% of the national electric bill. Researchers determined that more efficient designs could save an expected 15 to 20% of that energy. That amount represents 32 billion kWh/year, or a savings of $2.5 billion. If powered by DC, conversion losses could be reduced and significant savings achieved. EPRI Solutions conducted tests to assess the ability of two standard SMPS-type computer power supplies to operate on DC; a 250 watt ATX type typically used for desktop computers, and a portable plug-in power module for laptop computers. In both cases, tests revealed that the power supplies would operate properly when supplied with DC power of the right magnitude, although no tests were done to determine power supply operation and performance when connected to the computer loads. For the desktop computer power supply, sufficient output was provided when supplied with 150 V of DC or greater. For the laptop SMPS unit, 30 V DC was required to “turn on” the output, which begins at 19.79 V and continues at that output unless DC supply drops to 20 volts DC or below. Fluorescent Lighting with Electronic Ballasts—The key to DC operation of fluorescent lights lies in the use of electronic ballasts. The ballast is used to initiate discharge and regulate current flow in the
DC Distribution & The Smart Grid
lamp. Modern electronic ballasts function in much the same manner as a switched-mode power supply thus making it potentially possible to operate them from a DC supply. Virtually all new office lighting systems use electronic ballasts, which are more efficient and capable of powering various lights at lower costs. Only older installations are likely to have the less-efficient magnetic ballasts in place. For electronically ballasted applications, several manufacturers make ballasts rated for DC. Lighting systems could be retrofitted with DC-rated ballast units for DC operation. All light switches and upstream protection in line with DC current flow would also need to be rated for DC. Compact Fluorescent Lamps—Compact fluorescent lamps (CFL) are energy-efficient alternatives to the common incandescent bulb. A new 20-watt compact fluorescent lamp gives the same light output as a standard 75-watt incandescent light bulb, and also offers an average operating life 6 to 10 times longer. A compact fluorescent lamp has two parts: a small, folded gas-filled tube and a built-in electronic ballast. As with the fluorescent tubes used in commercial lighting, the electronic ballast enables DC operation of CFLs. EPRI Solutions’ testing of a 20-watt CFL unit with DC power supply revealed that while the CFL could operate on DC power, it required a much higher DC input voltage. With AC supply, the CFL provided constant light at 63 V, but with DC supply, 164.4 V DC was required. After speaking with CFL manufacturers, EPRI Solutions researchers determined that the CFL used a voltage doubling circuit on the input to the electronic ballast. However, the voltage doubling circuit does not operate on DC voltage. Hence, the DC voltage must be twice the magnitude of the AC voltage to compensate for the non-functioning doubling circuit. This resulting over-voltage on the capacitors could result in shortened lamp life, depending on the ratings of certain input elements in the circuit. The reduction in lamp life is unknown. Additional research is needed to determine whether the energy savings over the life of the lamp would compensate for the increased cost due to premature lamp failure. Electric Baseboard and Water Heating—DC voltage can be used to run almost any device utilizing an electric heating element, including resistive baseboard and electric water heaters. In these applications,
The Smart Grid: Enabling Energy Efficiency and Demand Response
electrical current flowing in a heating element produces heat due to resistance. The chief concern of using DC in such applications is not in the heating element itself, but in the contactors, switches, and circuit breakers used for such circuits. Since DC is more difficult to interrupt, the interrupting devices must be capable of clearing any faults that develop. There are no DC equivalents to ground fault circuit interrupters (GFCIs), which are commonplace electrical devices used in AC systems to prevent electric shock. Uninterruptible Power Systems—Uninterruptible power systems (UPS) are excellent candidates for DC power support. A UPS is composed of an inverter, a high-speed static switch, various controls, and battery energy storage. The functional objective of the UPS is to provide high reliability and power quality for connected loads that may be susceptible to voltage sags or short duration power interruptions. Most UPS systems have anywhere from a few minutes up to about 30 minutes of battery storage. For larger UPS units (>30 kVA), it is typical to have a backup generator that starts and picks up load a few minutes after the utility power is interrupted, which, today, is lower cost than having several hours of battery energy storage onsite. Since a UPS has an inverter and an internal DC bus, it already has many of the elements needed to operate with DC energy. Variable speed motors—Motors are very important electrical devices, and represent a significant portion of power use in the U.S. In industry, for instance, approximately two-thirds of the electricity use is attributable to motors. Most AC motor loads still use the same basic technology as the Tesla induction motor. These omnipresent motors convert AC power for applications such as air handling, air compression, refrigeration, airconditioning, ventilation fans, pumping, machine tools, and more. A workhorse of modern society, these motors can only operate with AC power. In fact, if subjected to DC power, an AC motor could burn up quickly. In addition, without alternating current, the magnetic vectors produced in the induction motor powered with DC would not be conducive to rotation and the motor would stall—so an induction motor simply will not operate directly on DC power. But DC can be used if a variable frequency drive is part of the system. A variable frequency drive allows for adjusting the motor speed, rather than operating it either on or off. By varying the frequency of
DC Distribution & The Smart Grid
power over a wide range, motor speed can be adjusted to best match the mechanical process, such as circulating air with a fan. This ability to adjust speed can translate into significant energy savings, as a CEO for a major manufacturer explains: Since a variable frequency drive converts 60 Hz power to DC and then converts the DC to variable frequency AC that is fed to the motor, a DC supply can be readily accommodated, further increasing energy efficiency. Greater adoption of energy-efficient variable speed motors, now underway for heating, ventilating and air conditioning systems and other applications, represents a greater opportunity for deploying DC power. In addition, several manufacturers now offer DC variable frequency drives for solar-powered water and irrigation pumps. DATA CENTERS AND INFORMATION TECHNOLOGY (IT) LOADS One of the nearest-term applications for DC power delivery systems is data centers, or “server farms.” These facilities are strong candidates for DC power delivery due to: (1) the availability of products that could enable near-term implementation; and (2) an economic imperative to increase energy efficiency and power reliability. A data center may consist of thousands of racks housing multiple servers and computing devices. The density of these servers keeps increasing, wasting power and generating heat with multiple AC to DC conversions. The need to provide more and more power to new blade server technology and other high-density computing devices has made reducing electricity costs a pressing goal within the data center industry. Multiple approaches are under consideration to increase energy efficiency, including a multi-core approach, with cores running at reduced speed, and software that enables managers to run multiple operating system images on a single machine. However, one of the more intriguing options is DC power delivery. In fact, a data-center industry group formed in late 2005 with support from the California Energy Commission through the Lawrence Berkeley National Laboratory is exploring the challenge of determining how DC power delivery systems can reduce energy needs and enhance the performance of data centers.
including Alindeska Electrical Contractors. Sun Microsystems. CCG Facility Integration. available at the Lawrence Berkeley National Laboratory website (http:// . TDI Power. which indicates that a typical data center of 1. Baldwin Technologies. Cingular Wireless. The objectives of the demonstration are to show: 1. and others are participating and contributing to the project. EDG2.000 racks could save $3. How much energy and money could be saved by eliminating these multiple conversions? Field performance data are yet to be documented. the California Energy Commission (CEC) and the California Institute for Energy Efficiency (CIEE) for a DC demonstration project at a Sun Microsystems facility in Newark. Efficiency gains from the elimination of multiple conversion steps in the delivery of DC power to server hardware. Hewlett-Packard. the group has obtained funding from the Public Interest Energy Research (PIER). visit an Excel-based calculator..5 million annually by using a DC power delivery system. How DC-powered servers and server racks can be built and operated from existing components. preliminary estimates of energy savings indicate that about 20% savings could be realized by changing from AC-based powering architecture to DC-based powering architecture for a rack of servers.. which requires multiple AC-DC-AC conversions. can have an overall system efficiency lower than 50%. RTKL. Liebert Corporation. 3. The existing AC-based powering architecture in a data center. Inc. Universal Electric Corp. Cisco. Table 5-1 shows one estimate from EPRI. However. Dupont Fabros.106 The Smart Grid: Enabling Energy Efficiency and Demand Response Headed by the Lawrence Berkeley National Laboratory and implemented by EPRI Solutions and Ecos Consulting. California. Pentadyne. Numerous Silicon Valley giants including Intel. Morrison Hershfield Corporation. EYP Mission Critical. Dranetz-BMI. Nextek Power. The level of functionality and computing performance when compared to similarly configured and operated servers and racks containing AC power supplies. SatCon Power Systems. Square D/Schneider Electric. and Verizon Wireless. To calculate energy savings estimates for different design configurations or using different assumptions. SBC Global. 2. NTT Facilities.
gains in reliability from DC power (not shown in this table) would not be achieved.200 Watts/ton. Overall cooling system efficiency = 1. Assumptions . rather than best-in-class systems. project life = 4 years. Only energy-related savings are considered. For instance. Energy savings estimate for one rack of servers with high-efficiency power conversion *The efficiencies for the AC system are based on typical. If a best-in-class AC system is compared to a DC best-in-class system. yearly energy savings might be about $873 rather than $3428.4 GHz Xeon processor based 1U server rack 1U = TK Energy cost = 12¢/kWh. other savings such as size and heat sink cost not considered.DC Distribution & The Smart Grid 107 Table 5-1a. However. number of 1U servers per rack = 40 Table 5-1b. the savings from use of DC power would be reduced. Calculations are based on typical power budget for a dual 2. discount rate = 6%.
Baldwin’s DC power system is being demonstrated at the Pentadyne Power facility in Chatsworth. has promoted benefits of a DC power delivery system for data centers. Management software and controls are available. and others have projected even higher reductions. so systems can grow with load requirements.gov/DC-server-arch-tool. For example. These estimated benefits are based on vendor claims. Intel has estimated that power consumption can be reduced by about 10%. which employs off-theshelf equipment available from several manufacturers.html). DC distribution eliminates power factor concern. including: • Rectifiers that convert utility- or generator-supplied AC power to DC (500 VDC) . Less heat would therefore be generated.108 The Smart Grid: Enabling Energy Efficiency and Demand Response hightech. as well as improvements that Baldwin anticipates will derive from its own DC power delivery system design. California. rated performance of components. lowering the cooling load of the facility. DC power distribution delivery is modular and flexible. Baldwin Technologies. which does system design.lbl. Busways with double end-feed features allow for redundant DC sources at critical loads. Server reliability may be increased by as much as 27%. No down-stream static or transfer switches are required. Grounding is simplified. DC distribution eliminates harmonics. The benefits and estimated performance improvements include the following: • • • • • • • • • A lower number of components are needed. and voltage-matched DC systems can inherently be coupled together. Other benefits of a DC power delivery system are also possible. leading to lower maintenance costs and greater reliability.
or even a hybrid automobile. But many obstacles must . One includes stand-alone systems that can operate full time as off-the-grid “islands. or commercial facilities offers the potential for improvements in energy-delivery efficiency. reliability. energy storage device. 5V. What might a future with DC power delivery look like? A number of options are available. but rather a flywheelbased system that can provide power to a 500 VDC bus if AC sources are lost Equipment racks with DC distribution entailing connectors that enable feeding power from two separate 500 VDC sources for redundancy DC to DC converters for conversion of 500 VDC power to lowvoltage DC (e.. etc. and promising benefits in terms of energy savings and increased reliability. and cost of operation as compared to traditional power systems.” independent of the bulk power supply system. DC systems can operate selected loads or critical subsystems. in this case not batteries. can charge a host of portable appliances. Hybrid buildings are also possible. 48V. In fact. DC power distribution systems may also help overcome constraints in the development of new transmission capacity that are beginning to impact the power industry. with utility-supplied power as well as building-based generators such as a solar array. as shown in Figure 5-2.) as required by server equipment • • YOUR FUTURE NEIGHBORHOOD Adding DC power delivery systems to our homes. Or a DC charging “rail” such as the kitchen countertop shown in Figure 5-1. 24V. such as computers and lights. POTENTIAL FUTURE WORK AND RESEARCH Technology advances suggest that there are significant opportunities for certain DC-based applications.DC Distribution & The Smart Grid • 109 Energy storage. power quality. fuel cell. equipment throughout the entire house could be powered by DC.g. office buildings.
Whether DC power systems are a practical option must be assessed. development and demonstration are needed to make DC systems viable. Additional research. and do not typically have ports for DC power delivery. they have been designed with internal conversion systems to change AC to DC. Although some specific products are available to .galvinpower.org) be overcome. Most Equipment is Not Yet Plug Ready.110 The Smart Grid: Enabling Energy Efficiency and Demand Response Tomorrow’s homes may be blissfully cord free. Demonstrations with Manufacturers are Called For—Even though electronic devices ultimately operate on DC. which may become tomorrow’s mobile “mini” power plants? Systems that will accommodate efficient. and reliable power delivery between such vehicles and either energy sources or loads are needed. Below. enabling people to charge portable electronics using an inductive charging pad fed by rooftop solar cells Figure 5-1. The Business Case for DC Power Delivery is Not Yet Clear—Will potential operating cost savings be sufficient to warrant initial capital investment for early adopters? For what applications? To what extent will DC play into new power delivery infrastructure investments? How. can DC power systems enable use of plug-in hybrid vehicles. for example. A DC-powered inductive charging system (www. we discuss some of the barriers and research needs presented by DC power delivery systems. safe.
storage systems. Figure 5-2.org) accept DC power—such as DC fluorescent lighting ballasts. such as energy efficiency. DC to DC converters. the benefits of DC power delivery. have only been estimated. More Field Testing and Performance Measurements are Required—Several manufacturers have developed components that enable DC power delivery in data centers. Measured data on potential energy savings. For Data Center Applications. To document potential and expand markets. as well as other performance metrics such as power reli- . including rectifiers. additional demonstrations are needed with equipment that holds promise for use with DC power delivery. appliances throughout the house could be DC powered. and rack distribution systems. based on vendor claims and rated performance of various components. However. a compelling business case is necessary before product designers and manufacturers will alter their products and add DC power ports—or make other changes to their equipment. or server rack distribution systems—for most loads.DC Distribution & The Smart Grid 111 From the kitchen inductive charger to the PC to the air conditioner. AC 60-Hz power still must be supplied. Since the electronics market is highly competitive and has relatively low profit margins. A possible DC power system for tomorrow’s home (www. such as variable frequency drives.galvinpower.
system integration. References DC Power Production. professional training—and time. the lifetime of converters. Also to be addressed are when and where solid-state switches need to be applied. DC power switches and interrupters employing semiconductors or other technology are needed for DC delivery systems. which requires investment in product development. techniques for controlling transients. maintenance needs. Installation. Therefore. buyers. and other factors are required. 2005. technicians. it may be appropriate to rethink the wider use of DC power distribution in buildings. installers. Further. Safety and Protection Standards and Equipment Need to be Developed—Since DC power does not cycle to a current “zero” 120 times per second like 60 Hz AC current does. require additional investigation and testing—as does research for grounding and balancing DC. June 2006. www.galvinpower. and users want to mitigate risk and cost. CONCLUSION As the smart grid evolves. Galvin Electricity Initiative: Transforming Electric Service Reliability and Value for the 21st Century. and Maintenance Need to be Established in the Marketplace—Adoption of any new technology or design procedures can represent a significant hurdle. . such as spikes from lightning strikes. and when an air gap is required.112 The Smart Grid: Enabling Energy Efficiency and Demand Response ability and power quality. Standard Practices for Design. it is more difficult to interrupt the flow of DC power. retailers. Delivery and Utilization: An EPRI White Paper. Designers. The Electric Power Research Institute.org.
a number of improvements to the 113 . For example. The 2003 blackout in the Northeast reminds us that electricity is indeed essential to our well-being. Power delivery has been part of the utility industry for so long that it is hard to imagine that this process has not already been optimized. public/private. coordinated effort the present power delivery system and market structure can be enhanced and augmented to meet the challenge it faces—evolving into an IntelliGridSM. And it highlights one of the most fundamental of electric functions: getting electricity from the point of generation to the point of use. INTRODUCTION The nation’s power delivery system is being stressed in new ways for which it was not designed. for. Simply stated. as stated in the July 2001 issue of Wired magazine. maintenance and performance issues that contributed to the August 14. the power delivery function is changing and growing more complex with the exciting requirements of the digital economy.Chapter 6 The IntelliGridSM Architecture For the Smart Grid The challenge before the energy industry remains formidable. “the current power infrastructure is as incompatible with the future as horse trails were to automobiles. the onset of competitive power markets. However. today’s electricity infrastructure is inadequate to meet rising consumer needs and expectations.” But with an aggressive. and the saturation of existing transmission and distribution capacity. while there may have been specific operational. 2003 outage. the implementation of modern and self-generation. Without accelerated investment and careful policy analysis. the vulnerabilities already present in today’s power system will continue to degrade.
• • LAUNCHING THE INTELLIGRIDSM As previously stated. New power flows resulting from changing geographic patterns of consumer demand and the installation of new power plants. This effort essentially launched the smart grid concept—albeit not using that label. Substantial system upgrades are needed just to bring service back to the level of reliability and quality already required and expected by consumers. including the effects of: • Reactive power reserves in the region. control and communications of power system activities on a regional basis. in 2001 the Electric Power Research Institute (EPRI) and the Electricity Innovation Institute (E2I) initiated an ambitious program. To assure that the science and technology would be available to address the infrastructure needs. and to allow markets to function efficiently so that consumers can realize the promised benefit of industry restructuring. It was called the Consortium for Electric Infrastructure to Support a Digital Society (CEIDS) and hoped to build public/ private partnerships to meet the energy needs of tomorrow’s society. coupled with issues of coordination. air conditioning. and fluorescent lights. . today’s electricity infrastructure is inadequate to meet rising consumer needs and expectations.114 The Smart Grid: Enabling Energy Efficiency and Demand Response system could minimize the potential threat and severity of any future outages. such as motors. rigorous investigation. It was the CEIDS effort that formed the foundation for most all smart grid efforts to follow. A sharp decline in critical infrastructure investment over the last decade has already left portions of the electric power system vulnerable to poor power quality service interruptions and market dislocations. Reactive power is the additional power required for maintaining voltage stability when serving certain kinds of energy consuming devices and appliances. EPRI’s study of the outage was performed during a three-week period immediately following and identified several areas that need further. Power flow patterns over the entire region.
Simply “gold plating” the present delivery system would not be a feasible way to provide the level of security. the average real price of electricity in the U. manufacturers and end users as well as federal and state agencies. the effects of deregulation are being seen in the wholesale market. quality and reliability on a collision course. . new technology is needed if society is to leverage the ever-expanding opportunities of communications and electric utilities’ natural connectivity to consumers to revolutionize both the role of a rapidly changing industry and the way consumers may be connected to electricity markets of the future. CEIDS believes that meeting the energy requirements of society will require applying a combination of advanced technologies—from generating devices (e. but over the next 20 years. The effect on retail markets will come more slowly. fuel cells. business savvy and technical excellence by attracting players from the electric utility industry. microturbines) to interface devices to end-use equipment and circuit boards.g. The main driving force behind efforts to increase competition in both wholesale and retail power markets was the need to make inexpensive electricity more widely available—in particular. with both prices and price differentials declining rapidly. reliable electricity to meet the energy needs of the digital society. is expected to fall by 10% for residential customers and 14% for industrial customers. Neither will the ultimate customers themselves find traditional utility solutions satisfactory or optimal in supplying the ever-increasing reliability and quality of electric power they demand.The IntelligridSM Architecture for the Smart Grid 115 The CEIDS consortium believed that the restructuring and rise of the digital economy have set electricity price. At the same time. reliability and availability required. however. CEIDS initiated the creation of new levels of social expectations. In addition. Already. CEIDS believed it could enable such a transformation and ushered the direction for building future infrastructure needed. CEIDS was guided by the following key principles: • Vision: To develop the science and technology that will ensure an adequate supply of high-quality. to reduce regional price inequities.S. quality. In order to achieve this.. industry restructuring has not yet provided adequate financial incentives for utilities to make the investments necessary to maintain—much less improve—power delivery quality and reliability. conventional power plants.
and updating protection schemes and relays. The consortium survives and prospers more than ever with over 50 collaborative partners. as described above. This would include building more transmission circuits. THE INTELLIGRIDSM TODAY The IntelliGridSM remains on course to provide the architecture for the smart grid by addressing five functionalities in the power system of today. Relieving Bottlenecks This functionality allows the U.116 • The Smart Grid: Enabling Energy Efficiency and Demand Response Mission: CEIDS provides the science and technology that will power a digital economy and integrate energy users and markets through a unique collaboration of public. enhanced voltage support. private and governmental stakeholders. In addition to increasing capacity. These sensors would be integrated with a real-time communications system through an Integrated Electric and Simulation and Modeling computational ability and presented in a visual form in order for system operators to respond and administer. making improvements on data infrastructure. this functionality includes increasing power flow. CEIDS later morphed into the IntelliGridSM and the Electricity Innovation Institute was absorbed into EPRI. These functionalities are consistent with those outlined in Chapter 1. and include the following: Visualizing the Power System in Real Time This attribute would deploy advanced sensors more broadly throughout the system on all critical components. Increasing System Capacity This functionality embodies a generally straightforward effort to build or reinforce capacity particularly in the high-voltage system. to eliminate many/most of the bottlenecks that currently limit a truly functional wholesale market and to assure system stability. upgrading control centers.S. bringing substations and lines up to NERC N-1 criteria. providing and allowing the operation of the electrical .
added billing information of real-time pricing). and the third involves what are more generally thought of as communications services (e.The IntelligridSM Architecture for the Smart Grid 117 system on a dynamic basis. To enable this functionality will require wide-scale deployment of power electronic devices such as power electronic circuit breakers and flexible AC transmission technologies. one which involves services related to electricity (e.. data services). outage and emergency services. These technologies will then provide the integration with an advanced control architecture to enable a self-healing system.. Enabling (Enhanced) Connectivity to Consumers The functionalities described above assume the integration of a communication system throughout much of the power system. and diagnostics Improved building and appliance standards • . This functionality would also require technology deployment to manage fault currents. then it is possible to consider controlling the system in real time. The EnergyPortSM is the linchpin technology that leads to a fully functioning retail electricity marketplace with consumers responding (through microprocessor agents) to price signals. The IntelliGridSM architecture includes a bold new concept called the EnergyPortSM (see Chapter 8).g. communications. connectivity to the ultimate consumers can be enhanced with communications.g. Specific capabilities of the EnergyPortSM can include the following: • • Pricing and billing processes that would support real-time pricing Value-added services such as billing inquiries. Once that system is present. The EnergyPortSM is the consumer gateway now constrained by the meter.g. power quality monitoring. and network intelligence to flow back and forth through a seamless two-way portal. home security or appliance monitoring). decisions. allowing price signals. service calls.. This enhancement will allow three new areas of functionality: one which relates directly to electricity services (e. Enabling a Self-healing Grid Once the functionalities discussed above are in place.
Improve productivity growth rates. demand response. increased economic growth • • • • . high-value energy services that stimulate the economy and offer consumers greater control over energy usage and expenses. and use of clean distributed energy resources and efficient combined heat and power technologies. “digital-grade” power needed by a growing number of critical electricity end uses. including low-cost. and stimulating the development. and use of energy-efficient equipment and systems. price-smart” electricity-related consumer and business services. Minimized environmental and societal impact by improving use of the existing infrastructure. Availability of a wide range of “always-on. promoting development. and loss identification Improved short-term load forecasting Improved long-term planning A SMART GRID VISION BASED ON THE INTELLIGRIDSM ARCHITECTURE The IntelliGridSM will enable achievement of the following goals: • Physical and information assets that are protected from man-made and natural threats. implementation. implementation.” Extremely reliable delivery of the high-quality. and a power delivery infrastructure that can be quickly restored in the event of attack or a disruption: A “selfhealing grid.118 • • • • • The Smart Grid: Enabling Energy Efficiency and Demand Response Consumer energy management through sophisticated on-site energy management systems Easy “plug and play” connection of distributed energy resources Improved real-time system operations including dispatch.
accelerated public/private research. • • • • Communication Architecture: The Foundation of the IntelliGridSM To realize the vision of the IntelliGridSM. This infrastructure is not being expanded or enhanced to meet the demands of wholesale competition in the electric power industry. GDP). Investment in expansion and maintenance of this infrastructure is lagging. natural disasters. standardized communica- . design and development (RD&D). BARRIERS TO ACHIEVING THIS VISION To achieve this vision of the power delivery system and electricity markets. reliability and availability (SQRA) needed for economic prosperity. commercial buildings. and decreased electricity intensity (ratio of electricity use to gross domestic product. security. investment and careful policy analysis are needed to overcome the following barriers and vulnerabilities: • • The existing power delivery infrastructure is vulnerable to human error. offices. and is unable to meet. Under continued stress. and does not facilitate connectivity between consumers and markets. while electricity demand grows and will continue to grow. The infrastructure does not adequately accommodate emerging beneficial technologies including distributed energy resources and energy storage. the present infrastructure cannot support levels of power. the needs of a digital society—a society that relies on microprocessor-based devices in home. The present electric power delivery infrastructure was not designed to meet. nor does it facilitate enormous business opportunities in retail electricity/information services. and intentional physical and cyber attack.The IntelligridSM Architecture for the Smart Grid 119 rates. industrial facilities and vehicles. quality.
support deployment of technologies that increase the control and capacity of power delivery systems. and eventually synergies among these information needs can be determined. such as customers responding to real-time process. DR owners selling energy and ancillary services into the electricity marketplace. This “Integrated Energy and Communications System Architecture” (IECSA) will be an open standards-based systems architecture for a data communications and distributed computing infrastructure. IECSA will enable the automated monitoring and control of power delivery systems in real time. The business models will include. including intermediate steps from vertical operations to restructures operations. more stakeholders. Power system security has also been recognized as crucial in the increasingly digital economy.120 The Smart Grid: Enabling Energy Efficiency and Demand Response tions architecture must first be developed and overlaid on today’s power delivery system. and enable consumer connectivity. data networking. communications over a wide variety of physical media. These business models will establish a set of working relationships between industry entities in the present and the future. Several technical elements will constitute this infrastructure including. There are many power system applications and a large number of potential stakeholders who already participate in power system operations. In the future. At the same time. and consumers demanding high quality will actively participate in power system operations. These were the initial steps in developing the IntelliGridSM: to define clearly the scope of the requirements of the power system functions and to identify all the roles of the stakeholders.com/. These were then included in an Integrated Energy and Communications System Architecture. but not limited to. Note that the IntelliGridSM Architecture is free to anyone and can be downloaded from EPRI’s web site at http://intelligrid. The key is to identify and categorize all of these elements so that their requirements can be understood. new and expanded applications will be needed to respond to the increased pressures for managing power system reliability as market forces push the system to its limits. thereby revolutionizing the value of consumer services. their information needs can be identified.epri. but not be limited to. and embedded computing technologies. the following: . enhance the performance of enduse digital devices that consumers employ. One of the most powerful methodologies for identifying and organizing the pieces in this puzzle is to develop business models that identify a strawman set of entities and address the key interactions between these entities.
Distributed resources at the distribution level. including optimal operations under normal conditions. time-of-use and real-time pricing. including participation of DR in market operations. congestion management. DR management. and in-building services and services using communications with end-use loads within customer facilities. automated distribution operation analysis. • • • • • The scope of IECSA architecture encompasses the power system from the generator to the end-use load. settlements and auditing. including automated meter reading (ARM). These business models will be analyzed and used to define the initial process boundaries for subsequent tasks.The IntelligridSM Architecture for the Smart Grid • 121 Market operations. feeder reconfiguration. Customer services. emergency power system management. prevention of harmful contingencies. transmission maintenance operations. generation maintenance scheduling. Generation at the transmission level. aggregation for market participation. microgrid management and DR maintenance management. power system scheduling. DR monitoring and control by non-utility stakeholders. Business process diagrams will be used to illustrate the more complex interactions. metering. including automatic generation control. Transmission operations. Distribution operations. This means the IECSA architecture includes the distributed computing environments in in-building environments. and coordination of wind farms. short-term operations planning. emergency control operations. . including energy transactions. meter management. the IECSA architecture extends as far as the electric energy extends to do useful work. outage management. In other words. power restoration. and support of distribution system operations. as well as interaction with the foreseen operation of intelligent end-use subsystems and loads within the customer’s facility. power quality monitoring. fault location/isolation. and outage scheduling and data maintenance. including coordinate volt/var control.
In order to enable the functionality of the power delivery system.122 The Smart Grid: Enabling Energy Efficiency and Demand Response The business models include the issues surrounding RTO/ISO operations and the seams issues between entities serving restructured as well as vertical markets. then the industry’s computational capability must be enhanced. look-ahead simulations and thus be able to avoid previously unforeseen disturbances. . These business models would address the application of new communications technologies that exhibit self-healing capabilities similar to that proposed for the power system Fast Simulation and Modeling Once the IECSA begins to be deployed. Standard documentation languages such as unified modeling language (UML). The business models also included key communications business models that could provide either common services or private network infrastructures to support the power industry through the IECSA architecture. The business models for communications include generic communications business functions that may have roles in the ultimate implementation of the IECSA including. Business entities include vertical utilities. common carrier services and the provision of access network technologies to customers. The intent here is to make the resulting information useful for the various stakeholder groups. high-level architecture (HLA). The FSM project will augment these capabilities in three ways: • Provide faster-than-real-time. This new architecture will provide a framework for fundamentally changing system functionality as required in the future. and others are incorporated as appropriate. This includes business operations that span across domains such as customer participation in ancillary service functions as well as self-healing grid functionality. a capability which allows fast simulation and modeling (FSM) will need to evolve in order to assure the mathematical underpinning and look-ahead capability for a self-healing grid (SHG)—one capable of automatically anticipating and responding to power system disturbances. while continually optimizing its own performance. Creating a SHG will require the judicious use of numerous intelligent sensors and communication devices that will be integrated with power system control through a new architecture that is being developed by CEIDS. but not limited to. as well as business entities anticipated to participate in a fully restructured electric and energy service industry.
by switching off a relay at a certain voltage—the activity may actually make an incipient problem worse and contribute to a cascading outage. The new simulation tools developed in the FSM project will help prevent such cascading effects by creating better system models that use real-time data coming from INAs over a wide area and. The next step in creating a SHG will involve addition of intelligent network agents (INAs) that gather and communicate system data. beginning in • . policy and risk analyses into system models and quantify their effects on system security and reliability. Because most control agents on today’s power systems are simply programmed to respond to disturbances in pre-determined ways—for example. The new modeling capabilities being developed in this project will allow planners and policymakers to simulate the effects of their activities before actually putting them into practice. As discussed later. The recent western states power “crisis” dramatically illustrated how untested policies and market dynamics can affect power system reliability. in turn. Modeling of Market and Policy Impacts on Reliability. the FSM project will focus on the following three areas: • Multi-resolution Modeling. and coordinate such decisions with overall system requirements. Integrate market. having such improved modeling capability will also enable planners to better determine the effects of various market designs or policy changes on power system reliability. coordinate the control functions of the INAs for overall system benefit. This effort will be conducted in parallel with the previous project. This off-line modeling activity will be the focus of work during the first two years of the project. instead of the benefit of one circuit or one device. To reach these goals. make decisions about local control functions (such as switching a protective relay). New modeling capabilities will be developed that provide much faster analysis of system conditions and offer operators the ability to “zoom” in or out to visualize parts of a system with lower or higher degrees of resolution.The IntelligridSM Architecture for the Smart Grid • • 123 Perform what-if analyses for large-region power systems from both operations and planning points of view.
feeders. This work will begin in the third year and continue through the end of the project. It will reach across customers. control centers. Full integration with on-line network control functions and INAs will be left to a follow-on project. and energy traders. • Validation of Integrated Models with Real-Time Data. The IECSA is required to integrate customer interaction. The focus of this project is to identify and propose potential solutions for enterprise and industry-wide architectural issues that will arise from the high levels of integration and management foreseen by this project. Unified integration architecture is the key enabler to successfully and inexpensively deploying advanced functions. integrated models have been thoroughly tested off-line. and business systems. This architecture must be robust enough to meet the numerous disparate requirements for power system operations and be flexible enough to handle changing needs.124 The Smart Grid: Enabling Energy Efficiency and Demand Response the first year. substation. Once the new. the DER/ADA Architecture . The IECSA must also provide a scalable and cohesive way to access resources across the wide spectrum of applications while at the same time providing the means to filter out unwanted data. power system monitoring and control. energy trading. The concepts and functions defined in the IECSA will support the development and deployment of distributed applications that reach to and across a great number of applications and stakeholders. they will be validated and enhanced using real-time data from major power systems. Whereas the IECSA Project is concerned with the broad requirements for the architecture. Open Communication Architecture for Distributed Energy Resources in Advanced Automation A subset of the work on an Integrated Energy and Communications System Architecture is the development of an open communication architecture for distributed energy resources (DER) in advanced distribution automation (ADA) or DER/ADA architecture. and then integrated with the multi-resolution system models. The DER/ADA Architecture Project will develop the object models for integration of specific DER types into the open communication architecture that is being developed through the companion CEIDS project know as the Integrated Energy and Communication Systems Architecture (IECSA) Project.
Growing the market for DER equipment vendors. The broadest use of the term includes distributed generation. Another term. piece of the whole—object models for DER devices. load management. which benefits both the utility and the consumer of electricity. • • ENABLING TECHNOLOGIES In addition to the IECSA foundation. combined heat and power. DER is used for brevity to denote distributed generation and storage. EPRI has developed the following list of critical enabling technologies that are needed to move toward realizing IntelliGridSM: • • • • Automation: the heart of the IntelliGridSM Distributed energy resources and storage development and integration Power electronics-based controllers Power market tools .The IntelligridSM Architecture for the Smart Grid 125 Project is focused on a very specific. object models will also be needed for other DER types besides distributed generation and storage. Providing a large market to communication and control equipment providers for sale of their products to help build the infrastructure. It is important to note that the term DER has various definitions and is used ambiguously in different situations. distributed resources (DR). but very important. Eventually. both in stand-alone (off-grid) applications and in applications involving interconnection with power distribution systems. Hence. and other technologies involved in electricity supply. Key benefits that will be derived from the object model development in this project and from the broader open architecture development in the IECSA Project include: • Increasing the functionality and value of DER in distribution system operations. is similarly used in an ambiguous manner. storage. for the remainder of this chapter.
self-optimizing smart power delivery system that automatically anticipates and quickly responds to disturbances to minimize their impact.126 • • The Smart Grid: Enabling Energy Efficiency and Demand Response Technology innovation in electricity use The Consumer Portal These technologies are synergistic (i. This will allow price signals. consumers will tie into this smart power delivery system. Each of these technologies calls for either continued emphasis or initiation of efforts soon in order to meet the energy needs of society in the next 20 years and beyond. Through a two-way consumer portal that replaces today’s electric meter. real-time power quality monitoring. Automation: The Heart of the IntelliGridSM Automation will playa key role in providing high levels of power SQRA throughout the electricity value chain of the near future.e. minimizing or eliminating power disruptions altogether. automation may mean automatic “islanding” of a distribution feeder with local distributed energy resources in an emergency. automation means a self-healing. Aspects of some of these enabling technologies are under development today. This smart power delivery system will also enable a revolution in consumer services via sophisticated retail markets. they support realization of multiple aspects of the vision). These challenges include the needs to strengthen the . Distributed Energy Resources and Storage Development & Integration Small power generation and storage devices distributed throughout—and seamlessly integrated with—the power delivery system (“distributed energy resources”) and bulk storage technologies offer potential solutions to several challenges that the electric power industry currently faces. The resulting fully functioning retail marketplace will offer consumers a wide range of services. To a distribution system operator. home automation services. To a power system operator. To a consumer. communications. and much more. automation may mean receiving hourly electricity price signals. including premium power options.. which can automatically adjust home thermostat settings via a smart consumer portal. decisions. and network intelligence to efficiently flow back and forth between consumer and service provider in real time.
higher-SQRA power. almost all electricity today must be used at the instant it is produced. A key challenge for distributed generation and storage technologies. In many instances. by eliminating power bottlenecks. is to develop ways of seamlessly integrating these devices into the power delivery system. effectively allocate risk. offer control of the power delivery system with the speed and accuracy of a microprocessor. rapid. for example.The IntelligridSM Architecture for the Smart Grid 127 power delivery infrastructure. and connect consumers to markets. especially by providing reserves. However. market-based mechanisms are needed that offer incentives to market participants in ways that benefit all stakeholders. . facilitate provision of a range of services to consumers. Hence. voltage flicker. provide high-quality power. These controllers allow utilities and power system operators to direct power along specific corridors—meaning that the physical flow of power can be aligned with commercial power transactions. and harmonics. service providers need a new methodology for the design of retail service programs for electricity consumers. Power Market Tools To accommodate changes in retail power markets worldwide. And market participants critically need new ways to manage financial risk. power electronics-based controllers can increase power transfer capacity by up to 50% and. consumers need help devising ways they can participate profitably in markets by providing dispatchable or curtailable electric loads. Both distributed storage and bulk storage technologies address the inefficiencies inherent in the fact that. facilitate efficient planning for expansion of the power delivery infrastructure. On distribution systems. extend the market reach of competitive power generation. and provide consumers lower-cost. various impediments stand in the way of widespread realization of these benefits. For example. At the same time. To enable the efficient operation of both wholesale and retail markets. and then dispatching them so that they can contribute to overall reliability and power quality. but at a power level 500 million times higher. open access to data is essential. Power Electronics-based Controllers Power electronics-based controllers. converter-based power electronics technology can also help solve power quality problems such as voltage sags. unlike other commodities. based on solid-state devices.
secure and managed communications between consumers equipment and energy service and/or communications entities. Further. to test the viability of various wholesale and retail power market design options before they are put into practice. the growth in GDP over the past 50 years has been accompanied by improvements in energy intensity and labor productivity. real-time pricing.128 The Smart Grid: Enabling Energy Efficiency and Demand Response development of data and communications standards for emerging markets is needed. Technology Innovation in Electricity Use Technology innovation in electricity use is a cornerstone of global economic progress. It would perform the work closely related to “routers” and “gateways” with added management features to enable energy industry networked applications including expanded choice. for example. and provide other benefits. The Consumer Portal Once communications and electricity infrastructures are integrated. reduce the U. GDP..S. The portal would sit between consumers “in-building” communications network and wide area “access” networks. trade deficit. detailed billing and consumption information. power market simulation tools are needed to help stakeholders establish equitable power markets. The portal would enable two-way.S. and network access based on consumer systems . enhance U. Development and adoption of technologies in the following areas are needed: • • • • Industrial electrotechnologies and motor systems Improvement in indoor air quality Advanced lighting Automated electronic equipment recycling processes In addition. realizing the ability to connect electricity consumers more fully with electronic communications will depend on evolving a consumer portal to function as a “front door” to consumers and their intelligent equipment. reduce emissions. In the U. wide area communications and distributed computing.S. This could include data management. widespread use of electric transportation solutions—including hybrid and fuel cell vehicles—will reduce petroleum consumption. Improved energy-use efficiencies also provide environmental benefits.
and other interested parties throughout the world need to contribute to refining the vision and evolving the needed technology. CONCLUSION The participation of energy companies. government and regulatory agencies. associations. technology companies. Only through collaboration can the resources and commitment be marshaled to enable the IntelliGridSM. public advocacy organizations. distributed energy resources. universities. and demand response capability with utility distribution operations. .The IntelligridSM Architecture for the Smart Grid 129 consisting of in-building networks and networked equipment which integrate building energy management.
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3. permanent demand reductions. This is accomplished through an integrated system comprised of smart end-use devices and distributed energy resources with highly advanced controls and communications capabilities that enable dynamic management of the system as a whole. Dynamic energy management is an innovative approach to managing load at the demand-side. demand response. It offers a “no-regrets” alternative to program implementers. and distributed energy resource programs and merges them in an integrated framework that simultaneously addresses permanent energy savings. 4. and temporary peak load reductions. This simultaneous implementation of measures sets this approach apart from conventional energy use management and eliminates any inherent inefficiencies that may otherwise arise from a piecemeal deployment strategy. Dynamic energy management consists of four main components: 1. It incorporates the conventional energy use management principles represented in demand-side management. Smart energy efficient end-use devices Smart distributed energy resources Advanced whole-building control systems Integrated communications architecture These components act as building blocks of the dynamic energy management concept.Chapter 7 The Smart Grid— Enabling Demand Response— The Dynamic Energy Systems Concept Dynamic energy systems provide the infrastructure to use the smart grid to enable demand response through dynamic energy management systems. The components build upon each other and inter131 . 2.
Thermal energy storage systems that allow for load shaping. The components and how they potentially interplay will be covered in greater detail later in this white paper. end-user or other authorized entity. Devices that represent an evolution from static devices to dynamic devices with advancements in distributed intelligence. utility constraints. diesel engines. automated and capable of learning. and industrial process equipment with the highest energy efficiencies technically and economically feasible. • • • SMART DISTRIBUTED ENERGY RESOURCES • On-site generation devices such as photovoltaics. The following bullet points summarize the predominant characteristics of each of these three components. Intelligent end-use devices equipped with embedded features allowing for two-way communications and automated control. The result is an infrastructure comprised of individual elements that are capable of working in unison to optimize operation of the integrated system based on consumer requirements. highly energy-efficient.132 The Smart Grid: Enabling Energy Efficiency and Demand Response act with one another to contribute to an infrastructure that is dynamic. available incentives and other variables such as weather and building occupancy. micro-turbines and fuel cells that provide power alone or in conjunction with the grid. fully integrated. lighting. On-site electric energy storage devices such as batteries and fly wheels. SMART ENERGY EFFICIENT END-USE DEVICES • Appliances. space conditioning. Internet protocol (IP) addressable appliance that can be controlled by external signals from the utility. • . one example is a high-efficiency.
they can send data (such as carbon dioxide concentration in a particular room) to an external source and they can accept commands from an external source (such as management of space conditioning system operation based on forecasted outside air temperature). temporary demand reductions or power quality. Devices that are dynamically controlled such that excess power is sold back to the grid. Local. for example. enduser or other authorized entity.The IntelligridSM Architecture for the Smart Grid • • 133 Devices that are dynamically controlled to supply baseload. Controls that have the ability to learn from past experience and apply that knowledge to future events. space conditioning. user preferences and external signals from the utility. security. Controls that ensure end-use devices only operate as needed. distributed energy resources. day-ahead . peak shaving. for example. etc. • • • • INTEGRATED COMMUNICATIONS ARCHITECTURE • Allow automated control of end-use devices and distributed energy resources in response to various signals such as pricing or emergency demand reduction signals from the utility.. individual controls that are mutually compatible with a whole-building control system. Controls that allow for two-way communications. can all be controlled by a central unit. lighting. examples include automatic dimming of lights when daylighting conditions allow or reducing outdoor ventilation during periods of low occupancy. appliances. ADVANCED WHOLE-BUILDING CONTROL SYSTEMS • Control systems that optimize the performance of end-use devices and distributed energy resources based on operational requirements.
• Figure 7-1 shows an example of the dynamic energy management infrastructure applied to a generic building. A dynamic energy management system is likely to have a much larger impact on a building’s electricity consumption and demand than just implementing energy efficiency and/or demand response on their own.g. ENERGY MANAGEMENT TODAY Current practice in the implementation phase of energy use management consists of several elements used alone or in combination to .g. Not only do all of these elements contribute to the utility’s supply-side by reducing building demand. automated controls with data management capabilities. an energy management system (EMS). the distributed energy resources can also feed excess power back to the grid. a facility manager could shut down the building systems from an off-site location during an unscheduled building closure. and distributed energy resources such as solar photovoltaics. other external alerts (e. • Allow the end-use devices. controls and demand response strategies are coupled with on-site energy sources to serve as an additional energy “resource” for the utility. and end-user signals (e.134 The Smart Grid: Enabling Energy Efficiency and Demand Response weather forecasts.. there are two-way communications via the Internet as well as via the power line. Example 7-1 illustrates this point for an office building in the U. wind turbines and other on-site generation and storage systems. Thus. advanced meters that communicate directly with utilities).. Communications systems that have an open architecture to enable interoperability and communications among devices. energy-efficient devices.g. In this example.S. a signal could be sent to shut down the outdoor ventilation systems in the building in the event of a chemical attack in the area). The following subsection describes a recent assessment that quantifies the energy savings potential associated with a smart grid. One of the key enabling characteristics of the Dynamic Energy Management framework would be a smart grid.. The building is equipped with smart energy-efficient end-use devices. distributed energy resources and/or control systems to send operational data to external parties (e.
demand and/or materials as well as to improve productivity.. Replacement or retrofit of existing end-use devices or processes with energy-efficient devices to reduce energy use.The IntelligridSM Architecture for the Smart Grid 135 Figure 7-1. energy cascading. from thermal processes to electrotechnologies). the elements can be divided into seven main categories: 1. . Load shaping strategies such as thermal energy storage which shifts load to off-peak periods. In general. 2. Improvements to the operation and maintenance of existing enduse devices and processes to reduce energy use. This includes housekeeping and maintenance measures. material recovery/waste reduction. 3. etc. 4. The Dynamic Energy Management Infrastructure Applied to a Generic Building effect a change in energy use characteristics at a given site. Energy audits and/or reviews of historical energy use characteristics to identify problem areas. demand and/or materials.g. This may also include fuel switching (e. heat recovery.
Installation of controls to turn end-use devices “on/off” or “up/ down” as required or desired to reduce energy use and/or demand.136 The Smart Grid: Enabling Energy Efficiency and Demand Response Example 7-1. EPRI. 7. . CA: 2007. Source: Dynamic Energy Management. Use of distributed energy resources to replace or reduce dependence on electricity from the grid. Demand response strategies to reduce peak demand temporarily. (Continued) 5. Palo Alto. This includes local controls and building energy management systems. 6. Dynamic Energy Management Applied to a Hypothetical Office Building.
(Cont’d) 137 (Continued) .The IntelligridSM Architecture for the Smart Grid Example 7-1.
implementation and monitoring of those utility activities designed to influence customer use of electricity in ways that will produce desired changes in the utility’s load shape.e. Oftentimes. electrification. i. savings. Specifically. respectively. (Cont’d) In some cases. changes in the time pattern and magnitude of a utility’s load. customer generation and adjustments in market share. The current practices within each of these three conventional categories are discussed next.” EPRI coined the term demand-side management in the early 1980s and continued to popularize the term through a series of more than 100 articles since that time including the five volume set Demand-side Man- . new uses. The elements are typically applied separately or in a piecemeal fashion. Demand-side Management “Demand-side management is the planning. Utility programs falling under the umbrella of demand-side management include load management. Economic evaluations are also a key component to energy use management programs to quantify expected costs.. while the last two elements are often considered separately and fall within demand response and distributed energy resource programs. the first five elements are conventionally considered to be encompassed in demand-side management programs. strategic conservation. payback periods and returns on investment. implementers of various energy use programs solicit participants. with the types of measures implemented being a strong function of the programs and incentives offered by implementers to program participants.138 The Smart Grid: Enabling Energy Efficiency and Demand Response Example 7-1. All of these elements fall within the framework of demand-side management in its broadest sense. the end-user takes the initiative to employ one or more of the elements listed above. However. typical practice compartmentalizes the elements into three main types of programs. however.
Demand-side management identifies how customers will respond.. Demand-side management is even more encompassing than the above definition implies. non-profit groups and private parties) implement demand-side management programs.). In general. not just electricity. government organizations. etc. demand-side management embraces the following critical aspects of energy planning: • Demand-side management will influence customer use. Normative programs (“we ought to do this”) do not bring about the desired • • • . because it includes the management of all forms of energy at the demand side. It is at this stage of evaluation that demand-side management becomes part of the integrated resource planning process. such as generating units. were measured in billions of dollars. To constitute a desired load shape change. and peak load reductions were stated in thousands of MW. Demand-side management must achieve selected objectives. it must result in reductions in average rates.e. In other words. annual demand-side management expenditures in the U. The concept also requires that selected demand-side management programs further these objectives to at least as great an extent as non-demand-side management alternatives. the program must further the achievement of selected objectives (i. Demand-side management is pragmatically oriented.S. it requires that demand-side management alternatives be compared to supply-side alternatives. purchased power or supply-side storage devices. achievement of reliability targets. Any program intended to influence the customer’s use of energy is considered demand-side management. While activities nationally have slowed since then. During its peak of activity.The IntelligridSM Architecture for the Smart Grid 139 agement which is widely recognized as a definitive and practical source of information on the demand-side management process. In addition. improvements in customer satisfaction. Demand-side management will be evaluated against non-demand-side management alternatives. energy savings were measured in billions of kWh. groups other than just electric utilities (including natural gas suppliers. demand-side management continues to influence the demand for electricity.
Finally. These components include (1) energy-efficient end-use devices (which includes modification to existing devices and processes as well as new energy-efficient devices and processes). this definition of demand-side management focuses upon the load shape. Moreover. Thus. the two-way communications fundamental to the dynamic feature of dynamic energy management were not available during the inception of the demand-side management concept. but it may not offer incentives for lighting controls or other measures.140 The Smart Grid: Enabling Energy Efficiency and Demand Response change. demand-side management does not inherently prescribe that the elements be implemented simultaneously as does dynamic energy management. the components are implemented separately rather than simultaneously. For example. and so they serve to update the demand-side management vision. Oftentimes. encompassing all actions that meet the critical aspects of energy planning listed above. not how they should respond. • Demand-side management value is influenced by load shape. a water-heating . week. In addition. It can even be considered to encompass most of the essence of dynamic energy management. despite its broad definition. systems and controls enabling load shaping (such as thermal energy storage devices). (3) standard control systems to turn end-use devices “on/off” or “up/down” as required or desired. month and year. (2) additional equipment. positive efforts (“if we do this. it embodies all of the seven elements (listed previously) that are associated with current practice in energy use management. and (4) the potential for communications between the end-user and an external party (however. However. In addition. demand-side management encompasses a process that identifies how customers will respond. demand-side management mainly results in the implementation of four main types of components in conventional implementation. this is generally not employed to a great extent). Furthermore. an energy-efficient lighting program may offer incentives for conversion from T-12 lamps and magnetic ballasts to T-8 lamps and electronic ballasts. Thus. that will happen”) are required. This implies an evaluation process that examines the value of programs according to how they influence costs and benefits throughout the day. the term demand-side management is extremely broad in its original intent.
These two broad categories of demand response are highly interconnected.S. However. the total potential demand response resource contribution from existing programs is estimated to be about 37. Incentive-based demand response programs offer payments for customers to reduce their electricity usage during periods of system need or stress and are triggered either for reliability or economic reasons. Time-based rates include time-of-use rates. nationally. emergency demand response programs. All of these measures positively affect both the energy companies and the customers to some extent. controllers and energy suppliers were undertaken. and the various programs under each category can be designed to achieve complementary goals. projected electricity demand for summer 2006. the benefits would be optimized. interruptible/curtailable rates.500 MW. Demand Response Demand response (DR) refers to mechanisms to manage the demand from customers in response to supply conditions. This represented approximately 5% of the total U. regardless of how the savings are achieved. and ancillary services market programs. According to a recent Federal Energy Regulatory Commission (FERC) study. . critical-peak pricing. Demand response can broadly be of two types—incentive-based demand response and time-based rates. demand bidding/buyback programs. or the term EPRI has defined—dynamic energy management—comes to play. There has been a recent upsurge in interest and activity in demand response.The IntelligridSM Architecture for the Smart Grid 141 program may offer incentives specifically for conversion from gas to electric water heaters or to heat pump water heaters. The vast majority of this resource potential is associated with incentivebased demand response. capacity market programs. A range of time-based rates is currently offered directly to retail customers with the objective of promoting customer demand response based on price signals. primarily due to the tight supply conditions in certain regions of the country that have created a need for resources that can be quickly deployed. for example. and real-time pricing. Incentive-based demand response includes direct load control. if a building-wide program incorporating a variety of measures coupled with a dynamic link between the end-use devices. Still other programs offer incentives for whole-building energy savings. having electricity customers reduce their consumption at critical times or in response to market prices. This is where dynamic demand-side management.
Additionally. telecommunication and metering all increase the opportunity for end-users to monitor and adjust their electricity consumption in coordination with electricity market conditions. Demand reduction strategies that are optimized to meet differing high-price or electric system emergency scenarios. as well as emergency load curtailment events. communication pathways to notify customers of real-time pricing conditions. and provide diagnostics to facility operators on potential loads to target for curtailment. Load controllers and building energy management control systems (EMCS) that are optimized for demand response. The future growth of the demand response market capability depends on the cost. analyze load curtailment performance relative to baseline usage. functionality and degree of process automation of technologies that enable demand response. distributed generation is an important source of supply when traditional supply sources become scarce. Developing these alternatives and incorporating them into the marketplace is increasingly becoming a reality and should provide in- . Enabling technologies for demand response include: • Interval meters with two-way communications capability which allow customer utility bills to reflect their actual usage pattern and provide customers with continuous access to their energy use data.142 The Smart Grid: Enabling Energy Efficiency and Demand Response ROLE OF TECHNOLOGY IN DEMAND RESPONSE Technology plays a key role in enabling demand response. Energy information tools that enable real-time or near-real-time access to interval load data. • • • • • Advancements in technologies regarding control systems. potential generation shortages. user-friendly. and which facilitate automation of load control strategies at the end-use level. On-site generation equipment used either for emergency backup or to meet primary power needs of a facility. Multiple.
The IntelligridSM Architecture for the Smart Grid 143 creased demand-side responsiveness in the future. regulatory and economic barriers. EIS/EMCS and utility-sponsored AMR programs. and to enhance the utilization of this program. the demand response enabling technologies have limitations in terms of system scaling and interoperation with other similar systems that impair their ability to be scaled up to serve the entire industry. Customers are often offered individual demand response programs instead of a single service offering comprised of dif- . raising air-conditioning set points. Demand responsive control systems integrate the controls for the distributed (demand-responsive) energy system with electronic communication and metering technology to facilitate one-way or two-way communication between utility and customer equipment. CURRENT LIMITATIONS AND SCOPE FOR DYNAMIC ENERGY MANAGEMENT Currently. with local control systems and one-way or basic two-way communications. Utilities or other energy service providers have not yet implemented for the most part the full functionalities associated with the enabling technologies due to a number of technological. Demand response functions are often applied to standard end-use devices.) in response to peak electricity demand emergencies and/or prices. One way to drive the costs down for demand response. the individual demand response-enabling technology components discussed here are oftentimes implemented in a piecemeal fashion without integration of the different technology components. These technologies are used to reduce energy use (by dimming lights. Customers are also investing in sophisticated energy information systems (EISs) and EMCSs—especially Internet-based controls for their facilities. is for utilities and customers to have common architecture for demand responserelated activities. Several vendors are selling proprietary hardware and software services for building energy management controls and systems. etc. Also. Integrated architectures require the implementation of common protocols used in today’s Internet technology. A service area that is growing rapidly is associated with automated meter reading (AMR) and advanced metering technologies. This results in demand response programs falling far short of the anticipated potential benefits associated with an integrated strategy to manage load.
To supply stand-alone power and/or heat (e. Since demand-side management and demand response have been treated separately herein.144 The Smart Grid: Enabling Energy Efficiency and Demand Response ferent options to manage their electricity load. distributed energy resources include technologies for distributed generation (non-renewable and renewable). because they do not understand that reducing their peak usage changes the system load profile and makes the electricity system more efficient. to minimize power purchases). even if peak reduction is not the primary program goal.g. very rarely are energy service providers talking about integrating energy efficiency and demand response into a single offering. for remote locations).g. power quality. Energy efficiency can reduce load significantly.. or they can be applied at the building level. including the generation of heat and power. To reduce transmission and distribution losses by placing power and energy sources closer to loads. Distributed Energy Resources In their most general sense. Virtually all energy efficiency programs. Furthermore. To augment power from the grid (e. 2. 3. combined heat and power. from market transformation programs (appliances and building codes) to immediate resource acquisition programs (rebates and performance contracting) help to lower system peaks. (Thermal energy storage was encompassed within demand-side management. energy storage.) Distributed energy resources can be applied at the utility-scale where they feed into the distribution system. The focus here is building-level distributed energy resources since they can be considered a demand-side energy alternative. and the load reductions occur over many hours of the load shape and for many days of the year.. and the storage of electricity. and even demand-side management and demand response. The principal purposes of distributed energy resources are: 1. Customers often do not connect their participation in energy efficiency programs with demand response. the current scope of distributed energy resources will include energy generation and storage technologies. which ultimately results in a low level of the potential being realized. .
to reduce peak demand costs and/or to enable participation in demand reduction programs). airports..g. zinc-bromine.g. for critical operations and processes). The vast majority of these units are installed to serve as backup generators for sensitive loads (such as special manufacturing facilities. 145 To provide peak shaving or load leveling (e. sodium-sulfur. hospitals. military installations. nickel-cadmium. phosphoric acid.g. large office towers. polymer electrolyte membrane) Batteries (e. reliability and security (e. nickel-metal hydride. etc. vanadium redox. 6.. large information processing centers. solid oxide) Superconducting magnetic energy storage Flywheel energy storage Ultracapacitors for storage 5. hotels. • • • • • • • • • • • Some of these technologies are significantly more established and implemented than others. molten carbonate. lithium ion. Some are still in the research and development stage. To guarantee power quality. diesel and gas reciprocating engines and gas turbines are well-established distributed generation technologies for large commercial and industrial buildings. For example.. To reduce capital cost of transmission facility construction.) ..The IntelligridSM Architecture for the Smart Grid 4. Some distributed energy resource technologies include: Solar photovoltaics Reciprocating engines Stirling engines Combustion turbines Microturbines Wind turbines Fuel cells (e.g. lead acid.
and an integrated communications architecture to dynamically manage energy at the end-use location. We refer to this concept here as dynamic energy management. etc. Moreover. or 10% of total capacity ordered. But the term energy storage is often used to refer specifically to the capability of storing electrical energy that has already been generated. The term energy strategy reflects the idea of accumulating energy in some form and then supplying it when needed. mobile phone. typical demand response strategies. we find these in our computer. Engines and turbines currently account for most of the distributed generation capacity being installed—approximately 20 GW in the year 2000. This concept is sometimes called electric energy storage to distinguish is from other types of energy storage. all of which allow the controlled accumulation and release of energy. energy storage encompasses fuels such as coal. At present. In its broadest sense. advanced wholebuilding control systems.146 The Smart Grid: Enabling Energy Efficiency and Demand Response for which long-duration energy supply failures would have catastrophic consequences. as well as water reservoirs behind hydroelectric dams. These batteries are charged during periods of excess generation and then are discharged during periods of insufficient generation. and typical implementation of building-level distributed energy resources by combining them in a cohesive. networked package that fully utilizes smart energy-efficient end-use devices. the demand for units for continuous or peaking use has also been increasing. Figure 7-2 illustrates the additional potential for functionality offered by dynamic energy management relative to conventional energy management practices. or “cool” storage (chilled water in tanks) or hot water. electric energy storage in building-level distributed energy storage is most commonly associated with batteries that are used in conjunction with non-continuous power generators such as wind turbines and photovoltaic systems. It trans- . there is increasing use of portable power storage devices. Backup power systems such as small-scale UPS devices are also widely utilized. and controllably releasing it for use at another time. HOW IS DYNAMIC ENERGY MANAGEMENT DIFFERENT? There is significant potential to increase the functionality of typical demand-side management measures. gaming systems. While nearly half of the capacity was ordered for standby use. gas and uranium. MP3 players.
a dynamic energy management system is a demand-side energy resource that integrates energy efficiency and load management from a dynamic. distributed energy resources. building-wide controls that are mutually compatible and capable of learning. Finally. (c) advanced whole-building control systems. whole-system or networked perspective that simultaneously addresses permanent energy savings. it transforms the basic communications associated with typical demand response and typical distributed energy resources into an advanced integrated two-way communication architecture that network the end-use devices. (b) smart distributed energy resources.The IntelligridSM Architecture for the Smart Grid 147 forms the energy-efficient end-use devices and processes associated with typical demand-side management into smart. permanent demand reductions. Additional Potential of Dynamic Energy Management Beyond Current Practice in Energy Use Management . standard controls associated with conventional energy management into advanced. Next. environmentally friendly on-site energy resources that are leveraged to their maximum potential to benefit the end-user. and temporary peak load reductions. the utility and the environment. As discussed previously. These components include (a) smart efficient end-use devices. It transforms the local. It transforms the standard distributed energy resources associated with typical practice into smart. it specifies some of the characteristics that individual components of a dynamic energy management system are likely to embody. and control systems with each other and with the utility or other external entities to dynamically manage and optimize energy use. highly energy-efficient end-use devices and processes. This section briefly outlines the operation of a dynamic energy management system from an integrated systems perspective. and (d) integrated communi- Figure 7-2.
external weather forecasts. a dynamic energy management system would also include distributed energy resources such as solar photovoltaic systems.148 The Smart Grid: Enabling Energy Efficiency and Demand Response cations architecture. For communication with external signals received from the energy service provider or with other external signals. OVERVIEW OF A DYNAMIC ENERGY MANAGEMENT SYSTEM OPERATION FROM AN INTEGRATED PERSPECTIVE A dynamic energy management system is comprised of highly efficient end-use devices. etc. the smart devices equipped with the responsive controls automatically respond to the external signals and optimize entire system performance. emergency events.” These smart devices have a built-in programmable response and control strategy. The energy-efficient end-use devices along with distributed energy resources are together referred to here as “smart devices. At the end. The performances of these distributed energy resources are also programmed to operate in an integrated manner with end-use devices at the facility so as to be able to optimize overall system performance. whereby users are able to program the device performance and set optimal performance levels based on a variety of external parameters such as external ambient conditions. diesel generators and fuel cells. say within . Depending on the hourly electricity price or other external parameters and based on the pre-programmed control strategy. equipped with advanced controls and communications capabilities that enable them to dynamically communicate with external signals and to adjust their performance in response to these signals. In addition to electric end-use devices. The devices are able to communicate with a variety of external signals such as electricity prices. thereby giving the energy service provider direct access and control to these devices. time of the year. some of the key features of a dynamic energy management system that are likely to facilitate implementation and user adoption are discussed. This will enable the energy service provider to connect the electric meter and end-use devices in the building to the Internet. advanced meters with communications infrastructure will be required. etc. consumer habits and preferences. This marks an emergence from static to dynamic end-use devices with advancements in distributed intelligence.
outside weather conditions. while for others (e. red-yellow-green signals) that tell occupants when the time is propitious to run these appliances. The response strategy of each individual smart device is networked and interacts with the response strategies of other devices in the system so as to be able to optimize entire “system” performance. the actuation of response could be occupant-assisted through signaling the occupant via some kind of notification methods (e. In a fully automated system. such as turning an air conditioner on or off. user preference may be to control some devices directly (e.g. For example. For devices that are indirectly controlled. a confirmation will be required for the action to take effect. Networking among devices allows internal communications and interactions among devices. appliance use and power consumption may allow for targeted control and be able to deliver predictable behavior and energy cost to the occupants. ranging from determining the best cost vs. they are enabled to respond to curtailment requests or high-energy prices from the energy service provider. an intelligent dynamic energy management system will contain learning functionalities with learning logic and artificial intelligence in order to be able to learn from prior experiences and incorporate these lessons into future response strategies. For example. For the dynamic energy management system to operate autonomously in response to electricity price or other external signals. the control and communications technology listens to an external signal.. occupancy. comfort tradeoff for current conditions. copiers and fax machines) direct control is probably not practical. and automatically deploy specific control strategies to optimize system operation and avoid high-energy costs. HVAC). and then initiates a pre-programmed control strategy without human intervention.. Even though the system is able to control multiple devices.. Information on different parameters such as temperatures throughout the building. The system should be able to execute a fully automated control strategy with override provisions. to the very physical.The IntelligridSM Architecture for the Smart Grid 149 the user “comfort range” to minimize electricity costs. The control devices have real-time control algorithms in their gateway devices and automatically control without manual operation.g. it must be capable of very abstract decision making.g. if an occupant attempts to lower the temperature set point at a time when electricity is expensive. The fact that the occupant confirmed that a lower set point was desired even though it would be costly to achieve becomes part of the learning . Furthermore.
The measure of success for the learning functionality is that occupants override the system less over time. Distributed energy resources with intelligent controls are able to synchronize their operation with end-use devices in order to optimize system performance. Smart devices contain microchips that have IP addresses that enable external control of these devices directly from the Internet or through a gateway. neural networks) to improve on future performance based on past performance experience. Smart devices are equipped with highly advanced controls and communications capabilities. Smart devices embedded with microprocessors will allow incorporation of diagnostic features within these devices based on critical operating variables and enable them to undertake corrective actions. They are also enabled to automatically feed back power to the grid based on overall system conditions. These devices have “learning logic” built into them (artificial intelligence. occupant habits. outside temperature and seasonal variables.150 The Smart Grid: Enabling Energy Efficiency and Demand Response process. • • • • • • . KEY CHARACTERISTICS OF SMART ENERGY-EFFICIENT END-USE DEVICES AND DISTRIBUTED ENERGY RESOURCES (TOGETHER REFERRED TO AS “SMART DEVICES”) • Smart devices are comprised of very high-efficiency end-use devices and a variety of distributed energy resources (discussed in earlier sections). It is desirable to have TCP/IP5 communication protocol so that the system can be set up and managed using common network management tools. Communications features for these devices need to be set up based on “open architecture” to enable interoperability. and on parameters such as building cool-down and heat-up rates.
Customer flexibility must be built into any stateof-the-art system. KEY FEATURES OF A DYNAMIC ENERGY MANAGEMENT SYSTEM The key features of a dynamic energy management system can be summarized as follows: Incorporate End-User Flexibility—Customers should have numerous options about how they can participate in a dynamic energy management system. if desired. some may choose to allow remote realtime sheds. in response to high electricity price signals. . For example. They should have the ability to use custom business logic that is applicable to their own operations.The IntelligridSM Architecture for the Smart Grid KEY CHARACTERISTICS OF ADVANCED WHOLE-BUILDING CONTROL SYSTEMS 151 Advanced whole-building control systems will need to incorporate the following functionalities: • • • • • • • • Receiving and processing information from sensors Sending actuation signals for control of devices Learning physical characteristics of the building from sensor information Managing time-of-day profiles Displaying system status to occupants Obtaining command signals and overrides from occupants Learning the preferences and patterns of the occupants Receiving and displaying external signals. while others may want some advanced warning via pager or cell phone and the ability to opt out. such as price information from the utility Advanced energy management and control system (preferably web-based) is likely to be an enabling technology.
g. etc. This strategy maximizes the performance. distribution and availability of the building data.. An “open system” architecture is essential in integrating the system operation. In systems in which EMCSs and EISs are highly integrated with enterprise .) continues to improve and equipment prices continue to drop. The use of existing IT technology in such systems wherever possible is an important way to keep costs low. The system will need to work right out of the box with no programming requirement. especially in large commercial buildings. “Open Systems” Architecture and Universal Gateways Essential for Integrating System Operation—An important concept in the dynamic energy management system architecture is that the layers of protocols across all the systems are common. Communication between devices and the Internet is accomplished through standard communications pathways including Ethernet. monitoring and controlling different devices from a central location or from anywhere in the network can be done only if a universal gateway is used.152 The Smart Grid: Enabling Energy Efficiency and Demand Response Simplicity of Operation Will Be a Key Features—For easy user adoption of a dynamic energy management system. In addition. Integration With Existing Building Energy Management Systems Essential—It will be advantageous for state-of-the-art dynamic energy management systems to have tight integration with any existing EMCS and EIS and enterprise networks within buildings. firewalls. and that seamless communication and control activity can occur. Leverage on Standard IT Platforms vis-à-vis Building Custom Systems—One of the most important ways to keep costs low will be to leverage existing trends in technology. The public Internet and private corporate LAN/WANs are ideal platforms for controls and communications due to their ubiquity. Also. Dynamic energy management systems based on standard IT platforms will also tend to be more scalable and secure than special-purpose systems developed specifically for the purpose. telephone line or wireless communications. while minimizing the installation and maintenance costs. the user interface for the system will have to be concise and intuitive for non-technical people. the performance of IT equipment (e. routers. It will need to behave autonomously based on effective initial defaults and machine learning.
The most robust and least costly systems should have no more than one enterprise network protocol and one control network protocol.The IntelligridSM Architecture for the Smart Grid 153 networks and the Internet. managing the flow of information is greatly simplified. E.. “Open Standards” and “Interoperability” are Key Characteristics—For flexibility and future proofing. Palo Alto. Cisco) will easily and naturally reside on a network with products from other companies (e. et al.” Report to CEC Public Interest Energy Research (PIER) Program. Clark W. “Demand Response Enabling Technology Development. truly open systems are interoperable. 2003. a device from one company (e. Arens.. Overview and Reports from the Four Project Groups. CONCLUSION In addition to the other features mentioned in this book. Flat Architecture Essential for Robust. Dimensions of Demand Response: Capturing Customer Based Resources in New England’s Power Systems and Markets—Report and Recommendations of the New England Demand Response Initiative. Phase I Report: June 2003-November 2005.. Low-Cost Systems—A state-of-the-art dynamic energy management system would have a flat architecture in which there are a minimum number of layers of control network protocols between the front-end HMI (Human Machine Interface) and final control and monitoring elements such as actuators and sensors. Transmission Control Protocol/Internet Protocol (TCP/IP) as developed by the Advance Research Projects Agency (ARPA) and may be used over Ethernet networks and . July 23.g. Nortel). In other words.g. References Gellings. University of California. FERC Docket AD062-000.. CA. 2006. 1984-1988. Communication using the TCP/IP protocol will ensure that the system can be set up and managed using common network management tools. Demand-side Management: Volumes 1-5. April 4. Assessment of Demand Response and Advanced Metering—Staff Report. Center for the Built Environment. Berkeley. August 2006. the smart grid must enable connectivity with customers in a dynamic systems concept. state-of-the-art dynamic energy management systems should use open standards wherever possible. Unlike proprietary systems. EPRI.
Report 1012160. Electric Power Research Institute. Electric Power Research Institute. IntelliGrid Architecture Report: Volume I Interim User Guidelines and Recommendations. December 2005. Various DDC system manufacturers have incorporated access via the Internet through an IP address specific to the DDC system. Use of this communications industry standard allows DDC network configurations consisting of off-the-shelf communication devices such as bridges. Report 1016259. Fast Simulation and Modeling. Electric Power Research Institute. Report 1010929. routers and hubs. June 2004. Electricity Technology Roadmap: Meeting the Challenges of the 21st Century: 2003 Summary and Synthesis.154 The Smart Grid: Enabling Energy Efficiency and Demand Response the Internet. . December 2007.
Consumers do actually have unlimited control over their electricity use. then signaling customers appropri155 . but it is the building block which fuels the digital economy. real-time creative industry.Chapter 8 The EnergyPortSM as Part of the Smart Grid Electricity consumers are changing. They do not have information on the time. If customers and their appliances have the ability to make consumption decisions.” Electricity is often taken for granted. risk-averse industry into an innovative. Electric systems increasingly are controlled by customer response and will be aided by real-time pricing and “dynamic systems. pattern and amount of their usage. they increasingly demand higher levels of reliability. options to purchase under alternative tariffs. In addition. or other electricityrelated services. Their behavior is increasingly driven by real-time management of electricity. they lack the will and the means to enable that control. However. The only information they receive is a month or more after they consume the energy. If the systems are in place. Many more customers would be interested in an automated system which would automatically monitor prices and system conditions and adjust individual building. Information and control are the key to enabling customers to manage their electricity costs. Nor do they have information on time-varying prices. efficiency and environmental performance. process and appliance systems to respond. The digital world is enabling a potential shift which could enable the electricity enterprise to shift from a commodity-based. While a segment of today’s customers may be willing to undergo the inconvenience of monitoring the electricity market in real-time and adjusting the operation of appliances and devices to minimize costs—that segment is in a minority. price-driven incentives will encourage customers to use electricity more judiciously—using less and managing peak demand.
low-cost sensors make precise. reduce the needs for energy overall. but some segments want to know more about electricity consumption patterns. These dynamic systems will allow the entire electricity infrastructure to respond to demand changes. investor-owned electric utilities are able to deliver effective and economic electricity energy. allow for much more efficient decisions on where electricity is generated. Advanced metering can be adapted to provide customers with more information and allow the customer to start making decisions. many new firms offer new customer-centric products and services. This would enable the electricity enterprise to operate more economically. will improve the environment. wireless and wired internet protocol (IP) addressable. They are not. especially during peak periods. able to offer comparable compensation to stakeholders for investments in most demand-response programs and in any energy efficiency programs. This may create a “market pull” which could fuel the need for regulators to adopt new regulatory arrangements which will allow utilities to invest in advanced metering infrastructure and energy efficiency. In most jurisdictions. in many cases.. and encourage investment. ventila- . the principal incentives lie with a potential change in the regulatory compact. Most utilities have the opportunity to replace today’s mechanical electric meters with a smart metering infrastructure that is capable of providing the customer with information using advanced meters to reduce costs and enhance services. web connectivity). Demonstration programs confirm that customers do not want to spend a great deal of time managing their energy use. However. and how it is distributed and utilized.g. standardization. As a result. load-serving entities do have an incentive to reduce peak demand since the production and purchase of electricity at those key times. however. utilities have limited incentive to minimize distribution throughput. There is evidence to suggest that the combination of ubiquitous low-cost communications. In addition. Customers routinely make investments in home and commercial electronics for reasons other than managing electricity—heating.156 The Smart Grid: Enabling Energy Efficiency and Demand Response ately—particularly that peak prices are higher than off-peak prices—will result in a change in consumer behavior. real-time and on-demand electricity management a low-cost increment to investments already being made to serve other needs (e. security. While some of the incentives to engage with customers exist now. lowers costs.
It has performed extraordinarily well. Therefore. and other services. It is not designed to enable “utilities” to invest on “both sides of the meter” to ensure the entire production-delivery-utilization chain is optimized. By its nature. It is a centralized supply-driven industry built around a philosophy of cost recovery. . Over the next decade. In fact. Electricity is produced by one or more forms of energy and then delivered to customers. research has shown that consumers do not choose the most optimal or most efficient appliances or devices. and communications computational ability and customer-enabled energy management control becomes ubiquitous. The traditional view of that system ignores the ultimate conversion of electricity into useful energy service.The EnergyportSM as Part of the Smart Grid 157 tion and air conditioning (HVAC) control. Unfortunately. In the evolution of the electric utility industry. It relies on top-down planning. As the world drives to become increasingly digital. the electricity industry is an anomaly. the shift to distributed resources could be an evolutionary event. In recent years. The system of regulation has served us well and established the basis for building the electricity enterprise. it is very command and control. The assumption is made that consumers will make the right decision regarding prices. transmission and distribution to serve customers interior need for electricity. the availability of end-use energy consuming devices and their control of those devices. As sensors and information technology networks become more common. and their control of appliances and devices is varied. decisions and operational control. the cost of retrofitting existing buildings will decline and new buildings will be designed to accommodate control and implementation of dynamic systems. the utility industry remains a highly asset incentivized industry. the compact created then did not include the entire electricity value chain. home entertainment. its focus is on the regulatory compact and the utilization of assets in generation. an independent merchant generation business dominated the supply business. security. In electricity. The “customer side of the meter” is perceived as someone else’s problem. the adaptation of advanced electricity management will become an integrated part of the entire electricity value chain. they do not necessarily participate in demand-side management programs. It is interesting to note that in many industries there has been a transformation to distributed systems.
and unsatisfactory monitoring. Unfortunately. This would unleash innovation in electricity retail space. the regulatory compact given to electric utilities encourages them to build adequate generation.. To the extent that some utilities were investing in a communications network. both due to their reluctance to engage with customers and a resistance to investment in any technologies that reduce kilowatt hour sales. imperfect pricing. They cite uncertain DSM results. transmission and distribution capacity to meet their consumers’ demand for electricity. Surveys have revealed that there is near universal agreement that working with electric utilities is difficult.158 The Smart Grid: Enabling Energy Efficiency and Demand Response The modestly successful effort of the 80s and the 90s to create a demand-side management (DSM) structure has impacted the industry’s shift to a customer-centric approach. Signs exist that this so-called “compact” may be renegotiated. lack of communications infrastructure and of common protocols. Yet this willingness may still not provide sufficient sustainable incentives to make the necessary changes in consumer behavior. Early efforts at energy efficiency received bad press because of poor design. In most states in the U. Unfortunately. With higher energy prices. even with regulatory incentives. They receive a return on that investment subject to limits also adjudicated by the state commissions. Utilities remain cautious about energy efficiency and demand response. These uncertainties have created a resistance to any new investment in the customer side of the value chain. few consumers of electricity are incented to or able to manage their electricity demand—they have no price signals. home and building security services. utilities and other electric service providers have had bad experiences investing in customer-related technologies such as telecommunications. there is a greater willingness to look at demandresponse and energy efficiency efforts. get involved in hardware and services to customers. internet technologies. even though those programs have been an overall success. awkward administration. they were often not doing so using open IP protocols. the reduction in consumer acceptance and response of demand-response programs is cited as evidence. The result is that today.S. and a lack of experience in joint venturing and teaming with retailers. . The Department of Energy estimates a one-third decline. and other customer-related services.
the power system will be able to respond to demand changes. heavier reliance on high-quality electricity in home-entertainments backup and standby devices. customers will be able to program energy management capabilities. Engaging in control over one’s electricity destiny may not mean sitting in front of a PC all day. There is some evidence to indicate that a segment of electricity consumers will want to exercise control of their electricity use—if the technologies were present which facilitated that control. and marginal pricing which sets prices high enough to stimulate innovation and the penetration of new technologies. The segment of the population willing to engage in energy management will grow as more are convinced as to how this is in their enlightened self interest. ubiquitous communications (wired and wireless). it will allow for more efficient decisions regarding where elec- . It may mean setting a few controls on a “master controller” so as to have a brain automate the purchase decision for the consumer. In addition. this status may evolve. It is possible to imagine a future where virtually all electricity-using devices incorporate sensors that manage the pattern and amount of consumption of the consumer. there is the potential to piggyback on the “computer revolution” to build on infrastructure and cultural affinities incrementally. these advanced systems will allow interactive control in response to signals for utilities and other providers. and no portals or interfaces that allow them to see how they are using electricity. However. emerging mass market in residential wireless sensor management. This may include the capability to interface with the energy management systems resident in industrial facilities and large commercial buildings. Many will not be engaged in the heavenly pursuit of managing the operation of their energy-consuming devices and appliance and the building they are resident in. Through electricity portals. The question is whether today’s incumbent electric utilities will leverage this opportunity or leave it to third parties. As a result. With the evolution of web-enabled energy management and cheap.The EnergyportSM as Part of the Smart Grid 159 no choice among usage profiles that reflect their social and economic views. These include IT advances. The electricity industry is moving toward an intersection where higher electricity and fuel prices and changes in electricity rates are aligning with dramatic advances in real-time internet protocol (IP)-based wireless communication. especially IP-based and inexpensive sensors.
To some extent. Some researchers believe that within 10 years the penetration of new technology will be underway as an increment to the current trends in home and business automation which will allow rapid deployment of electricity-related management technology. And furthermore. There is evidence to suggest that a segment of electricity consumers will take advantage of the ability to manage their electricity once that ability is enabled. wholesale . they are also caused by daylight and weather. These technologies will create the potential for radically changing the electricity system from a supply-side system to a high-reliability “perfect” demand-driven incentive industry. Tomorrow’s power system will incorporate electric energy storage capacity and a micro-grid orientation that will allow consumers demand to be managed at the substation- and-below-level to maximize the power system. It is essential that structural incentives are put in place to supersede today’s utility opposition and reticence to consumer programs. Yet the consumer has no knowledge of those variations. these patterns are based on household schedules. In the future. i.. and a return to a lower. This includes enabling consumers to be aware of the variability in electricity demand and price. The short-term purchases are made on the basis of a variety of market-based exchanges. environmentally friendly system which will encourage investments in perfect power systems. more air conditioning on hot days.160 The Smart Grid: Enabling Energy Efficiency and Demand Response tricity should be generated and how it is distributed. Typically. the prices individual consumers pay bear little or no relation to the actual cost of providing power in any given hour. The price of electricity in most markets is based on a combination of long-term and short-term markets. The demand for electricity varies daily and seasonally. moderate demand in the evening. no incentive to modify either the pattern or amount of demand. The result will be a more economical. etc. electricity costs vary— sometimes appreciably.e. less artificial illumination is required on bright days. There will be significant variations in deployment. In short. a high-demand period in the late afternoon and early evening. Consumers cause this pattern of demand due to their use of energyconsuming devices and appliances. a rise in demand in the morning to a moderate period through the day. it is possible that a significant portion of new generation could be built locally utilizing various distributed and renewable resources. The long-term purchases are negotiated and set by contracts. The daily variation ranges from lower demand overnight. In part. Meanwhile over these periods of usage.
Dynamic systems empower consumers and enable them to control their electricity choices with more granularity and precision. Dynamic systems can enable a diverse and consumerfocused set of value-added services. Active demand response to price signals inherently acts to moderate strains on the entire system. Dynamic systems harness the recent enhancements in information technology. Consumers have no incentive to change their consumption as the cost of producing electricity changes. . The evidence of the past 20 years suggests that electricity consumers will respond to time varying prices. Dynamic systems and the digital technology that enables them are synergistic. the focus is shifting to the question of the symbiosis of pricing and technology. the ability of customers to choose and to control their electricity consumption using digital technology is at the core of transforming the electric power system. better asset utilization and reduced needs for additional generation and transmission investment. Customers can make their own pricing decisions. but the customer does not feel the affects of those prices until they receive their bill some weeks later. These same technological developments also give consumers a tool for managing their energy use in automated ways. use default profiles. Increased reliability is one particularly valuable benefit of implementing dynamic systems.The EnergyportSM as Part of the Smart Grid 161 electricity is sold at a combination of fixed and marginal costs. This can range from energy management systems in buildings that enable consumers to see the amount of power used by each function performed in the building to appliances that can be automated to change behavior based on changes in the retail price of electricity. However. Dynamic systems can yield lower wholesale electricity prices. or let the supplier control demand through switching. This arrangement could be radically modified by the implementation of a dynamic system—a system which would communicate the price of electricity and enable consumers to respond to those price signals. Dynamic systems allow the reduction of peak-period consumption reducing the likelihood of transmission congestion and generation shortages. The consequences of this disconnect between cost and consumption yields inappropriate investments in generation and transmission. As a result. In conjunction with time-varying pricing signals enabled by a dynamic system. they see no connection between their behavior and the cost of electricity.
management. The ability for consumers to be informed about their electricity behavior creates incentives to seek out novel products and services that better enable them to manage their own energy choices and make decisions that better meet their needs. The EnergyPortSM provides a view into consumer facilities and carries the definition further to include communications with energy management systems and even end-use subsystems and equipment. Competition for the business of customers would drive innovation in end-use technologies.” To date. comfort. The EnergyPortSM can perform the functions of a communications gateway that physically and logically inter-connects a wide-area access network with a consumer’s local network. the term “portal” is experiencing growing use in reference to internet-based web servers that provide a web-based view into enterprise-wide activities.” part “gateway. the term portal has been narrowly defined as relating to communications data hubs. narrow access points. data processing. It is envisioned that the EnergyPortSM will have locally available computing resources to support local monitoring.162 The Smart Grid: Enabling Energy Efficiency and Demand Response One of the most important benefits of dynamic systems are their ability to unleash innovation. and meter is the traditional electric utility interface with its customers limited to measuring consumption. convenience. induces entrepreneurs to provide products and services the consumers demand. . This incentive. in turn. The EnergyPortSM is a device or set of devices that enable intelligent equipment within consumer facilities to communicate seamlessly with remote systems over wide-area networks. WHAT ARE THE GENERIC FEATURES OF THE ENERGYPORTSM? The EnergyPortSM may benefit consumers in seven ways: safety. security. and entertainment. The EnergyPort would facilitate consumer engagement with such dynamic systems. and storage. energy management.” and part “smart electric meter. communications. In fact. WHAT IS THE ENERGYPORTSM? The EnergyPortSM is part “portal. gateway often refers to specific.
Unless that happens. The EnergyPortSM System is an enabling system that handles the distribution and control of electric energy and other energy sources as well as all kinds of communications. DVDs. telephone. In the EnergyPortSM. cable TV. It also provides an estimate of the appliance’s energy consumption. an appliance must be plugged in and it must actually request power through a small communication chip it will contain. audio and video distribution. The use of such a universal outlet will not preclude the use of any conventional appliance. and the like … some wireless and others often in separate wiring systems. telephones. communications. That cable will run to every convenience outlet in the building and provide all the power.The EnergyportSM as Part of the Smart Grid 163 Simplify Building Systems Today’s buildings use separate systems for ethernet. or (3) radio networks will send signals displacing all but the basic electrical wiring. VCRs. Before energy can be fed to any type of outlet. doorbells. Safety The EnergyPortSM System can enable the distribution of electric energy far more safely through the use of a “closed-loop” system. thermostat. TVs. power. stereos or speakers into a universal outlet that will link them to each other and to the services they require. and lets the system . No longer will consumers have to search for special jacks for audio. its communications chip supplies an appliance identification to the system (much like the bar code does at the grocery store). intercom. Because the outlet is effectively “dead. security wiring. The EnergyPortSM System can plug printers. or (2) power line carrier signals will be superimposed over the buildings power lines. and others. In such a “closed-loop” system when an appliance is plugged in. will be simplified.” the probability of electrical shock or fire hazards are substantially reduced. video. those systems. conventional appliances consumers may wish to use in the EnergyPortSM System will be immediately usable with the system. Three approaches will be available: (1) They can be integrated and consolidated into one hybrid cable. fax machines. no energy is available at the outlet. radios. Any of the old. or telephone. and control capabilities the building owner will need at any convenience outlet in the building. toasters. A microprocessor will identify each appliance to the EnergyPortSM. No longer will they have to run separate lines for security systems or intercoms.
And then its use is continually monitored by the system.164 The Smart Grid: Enabling Energy Efficiency and Demand Response know the appliance’s status—is it on or off. consumers don’t have the president making every decision or doing every task. a standby generator. . In order to keep these devices alive when the main power fails. or refrigerator. Much like good management in a business organization. and it could provide the necessary minimum power for security and alarm systems. short. This storage system could allow the system to keep intact any instructions programmed in. The reasons for this are efficiency and reliability. an uninterruptible power supply can be enabled based on a storage device. cooking or lighting. or ground-fault condition. Now if that monitoring signal is interrupted or terminated. but in some home situations. energy flow is immediately shutdown. the EnergyPortSM will immediately switch over to the appropriate source. or it might be a poorly made plug connection or a short. decisions and actions are carried out most efficiently at the lowest levels possible. Regardless. Reliability The EnergyPortSM could offer even more to consumers in the event of an outage. such as photovoltaics. or distributed control. There could be several parts of the system that use powered control devices. the consumer remains safe and secure because the energy flow has been shutdown … and will not be able to start again until the proper conditions exist. is it in proper working order. or gas cogeneration systems. such as the freezer. it could be an overload. Depending on the sizing of the alternate power source. to carry out its operations. Another advantage of the EnergyPortSM system that can come into play when there’s a power outage is the integration with alternate power sources. Thus. the EnergyPortSM System could provide the power necessary for selection of operations. it could continue any timing operations necessary. Reasons for interruption might include unplugging the appliance or shutting it off. Decentralized Operation The EnergyPortSM System is not a computer-controlled building in the sense that there’s a single personal computer running things. The EnergyPortSM uses distributed intelligence. it could be critical. Only then is energy allowed to flow through the outlet to the appliance. Not only is this capability convenient.
Everything in tomorrow’s buildings will be controlled by signals… whatever device can send the appropriate signal can be used to control whatever the consumer chooses. The same is true for a multitude of other devices. infrared remote control devices. or even vice recognition devices. that switch can be assigned to control anyone of a range of desirable applications. contrast. one of the neat things about EnergyPortSM control is that whatever the consumer uses to control operations or timing. access to control the volume. such as display panels. If the furniture was rearranged or it was more convenient to run operations differently. you might use one procedure for the washing machine.The EnergyportSM as Part of the Smart Grid 165 In the EnergyPortSM System. they only have to learn one basic set of instructions. To control the TV. or the TV. The floor lamp might be assigned to an occupancy detector as well as another wall switch. turn on all . For example. perhaps these options now become available: beyond just simple on/off. video touch screens. from switch or panel display. In this case. the living room might be set up to have the table lamp controlled by either the telephone or a wall switch. the assignment would simply be changed. another for the DVD or VCR. Sensors are just another kind of switch. temperature. there is a proliferation of appliances. For example. they can be used to determine unauthorized entry. color. music. telephone keypads. and channel. each with its own set of instructions. and occupants can decide what response should be made. In homes today. It might be to light up the outside at night. and still another for the alarm clock. the house would not have to be rewired. Consumer Interface Consumers will interact with the EnergyPortSM in a variety of ways. Therefore. Now it is simply sending a signal to the system. the reliability of the entire building energy and communication system is integrated. another for the microwave. However. No longer is the switch on the wall physically opening and closing the path of power to an outlet or fixture. most problems can be isolated and kept from affecting other operations because of distributed control. So when there’s a failure of any one component. to set the timing of an operation. time. And their use can be very helpful in the EnergyPortSM System. Keeping it simple is a basic premise of the EnergyPortSM. consumers may be able to select to control the lights. For example.
Here. Appliances That Talk to Each Other One of the most exciting forms of control made possible by the EnergyPortSM comes through appliance-to-appliance communication. the ringing of the telephone or doorbell would cause the vacuum cleaner to shutdown so a consumer could hear and respond.166 The Smart Grid: Enabling Energy Efficiency and Demand Response the interior lights. it could prevent a char-broiled steak for dinner from becoming charcoal. simply lock out the use of the range until parents return. This can come in very hand in order to issue one command from the comfort of one’s bed at night to lock the doors. for example. The same can be done for power tools in the workshop. Here. Still another form of safety comes when consumers can be kept from making mistakes … such as leaving the range burner on. The EnergyPortSM would monitor safety. . sound an alarm. During the day. an expensive stereo system. set the security alarms. Those same sensors can do double duty. or a sophisticated sewing machine. sensors can also work interactively. they might simply determine an individual’s presence so that they can light their way from room to room. turn off all the lights. when consumers are at home. and call the police of an emergency monitoring service for assistance. Safety Safety has a high priority among consumers. or the baby. To keep the student from playing Betty Crocker in an unsupervised situation. but particularly for the elderly or infirmed who might not be able to exercise other forms of control. Telephone control can come in handy when unexpected events cause a change in plans. Voice recognition devices are becoming increasingly reliable and affordable. why should the lights be turned on in a room that already has enough light coming in the window on a bright day? Or why should the lights come on if no one’s in the room at all? The EnergyPortSM can enable remote control whether by a switch or telephone keypad or the like. For example. In the EnergyPortSM. Another form of safety comes when we can prevent dangerous things from happening … as in the case of a young person who arrives home from school before his/her parents have returned. Consumers could carry the laundry. from room to room without having to fumble and stumble for a light switch. Such a unit in the EnergyPortSM System can make life better for all of us. and turn the thermostat to its set-back position.
told where the location of the fire is. The use of sensors in a building need not involve cumbersome extra wiring or complications. all this information can be called out immediately to the fire department or emergency monitoring service so they can respond promptly and appropriately to the problem. for example. Meanwhile. telephone. No longer will consumers have to run unsightly. cable TV. and sometimes unsafe. For example. Another kind of convenience comes when consumers are visited with a permanent or temporary disability or simply a change in the way they will be using their home or building. Comfort is a key factor in deploying the EnergyPortSM System. Indeed. In addition. if a particular light switch is wired to a particular outlet where there is a table lamp. and flash the lights showing the safest pathway to exit the home. an extension cord has to be run to control it if the consumer decided to place it elsewhere. or stereo when they choose to rearrange the furniture. what rooms are occupied. The EnergyPortSM will enable consumers to set different temperature and humidity levels in different areas of their buildings. Communication Essential to the EnergyPortSM are the deployment of advanced communications capabilities.The EnergyportSM as Part of the Smart Grid 167 Fire. while it remains comfortably warmer for guests in the living or dining room. Right now. the EnergyPortSM provides the convenience of being able to plug in any appliance anywhere in the home. they simply go out and purchase or rent the EnergyPortSM component to meet their needs. the occupants can be alerted. Should a particular product or control device be needed for a period of time. the system can be reconfigured to control a lamp regardless of location. extensions for power. the convenience of being able to plug in whatever kind of sensor can meet the consumer’s needs into an outlet conveniently located anywhere significantly reduces costs and adds a great deal to the safety and security of the home or business. And why heat the bedrooms during that time just to keep guests’ coats warm? The EnergyPortSM System will allow separate zones or rooms of the home to be conditioned to suit specific needs at any time of the night or day. Whether it be to coordinate all the items . of course. keep the temperature cooler in a room where Thanksgiving dinner is being prepared. is something to always be mindful of. With the EnergyPortSM System. Should one break out in a building enabled by the IntelliGridSM.
or what the cost of energy is at a particular time. Or. and cost of use. might have a cost the consumer more money or caused a bigger problem. By so doing. Heating water is one of the more costly uses of energy. the communications chip in each appliance was described as also providing energy consumption information for that appliance to the system.168 The Smart Grid: Enabling Energy Efficiency and Demand Response on the menu for a particular meal so that they all are finished at the same time for dinner … or simply to use the telephone as an intercom to keep you from running or shouting to one another throughout the building. No longer does heat have to be used for the worst-case situation. They’ll simply want to make some preliminary decisions about how they’ll spend that energy dollar for different degrees of efficiency. the consumer can save money . so you can respond appropriately. The EnergyPortSM can help consumers manage the use of energy more effectively. A problem. It will help building owners and operators decide when to use heating and cooling systems based on whether or not anyone’s occupying the space. that if undetected. In “closed-loop” control. it can also let building owners know if the system itself is suffering any problems. duration of use. what rooms are occupied. Not only can the EnergyPortSM System relay diagnostic problems from appliances. This is a much sought-after feature that places the consumer in control of how energy expenses are managed. Why spend the money to maintain a constant temperature when a particular level of hot water is only required at certain times. The feature enables the building owner to call up a printout or display of his estimated energy use whenever wanted. many consumers are not inclined to use such information. comfort and convenience. just keep building owners apprised of its status or maintenance requirements. perhaps. or clothes water at the right temperature at the right time. dish water. Perhaps the capability of placing a small video camera in the nursery will give a consumer more peace of mind when the babysitter is down in the family room munching popcorn and watching TV … or being alerted to a problem in one of the appliances in a building. Many will want to take advantage of “realtime” pricing structures likely to be introduced by more and more utilities around the country. Of course. Now consumers can have their shower water. there can be different water temperatures for different needs. That estimate can be broken down appliance by appliance. time of day. Also.
Entertainment Entertainment is an additional benefit of the EnergyPortSM. Remote Consumer-Site Vicinity Monitoring The EnergyPortSM can support local data monitoring to support a variety of applications including. the EnergyPortSM System enables demand-side load management. Another help to both the utilities and the consumer comes from what the EnergyPortSM can do when power must be restored after an outage. Because each building can be linked to the utility company. It may be as simple as cycling the air-conditioner to save energy during the cooling season. and home energy. the utility can restore full power sooner to affected consumers … and the consumer doesn’t have to be without power for as long as he might have been. Such monitoring capabilities could be extended to other parameters such as security. quality-of-service monitoring. outage detection.The EnergyportSM as Part of the Smart Grid 169 by time-shifting their use of energy. For the utility companies. but not limited to. the utility can now selectively restore the power to appliances in the home. while teenagers can be soothed by Beethoven in the bedroom … or vice versa! Network Communications Management The EnergyPortSM can support both the applications that are dependent on internetworking as well as the functions necessary to manage the networks and connected devices. and other functions that can support the provision of reliable digital quality power for the future. microclimate weather. gas and water operations support. The EnergyPortSM can enable one central audio source to provide a selection of music to several different rooms of the home. Markets One of the greatest values of the EnergyPortSM can be to enable consumers to effectively respond to electric energy market dynamics and . it can mean significant savings without sacrifice. Therefore. for the consumer. electric. This means the utility doesn’t have to wait until it has enough power available to handle the huge start-up current demand that’s called for when power is restored all at once. Someone can listen to punk rock in the rec room.
Carnegie Mellon University. Gellings. . A Bold Vision for T&D. Today’s metering doesn’t enable consumers to respond to prices that vary hourly or even more frequently. Within the local energy network. CONCLUSION The smart grid would be the glue which enables the ElectriNetSM to stick together.170 The Smart Grid: Enabling Energy Efficiency and Demand Response real-time pricing. December 2004. Communicating market pricing to consumer-owned energy management systems and intelligent end-use equipment will greatly help to close the gap between consumers and market pricing for electricity. It would connect Low-Carbon Central Station Generation to local energy networks and to electric transportation.W. some form of portal would be needed to enable the ultimate connectivity—that to the consumer. References EnergyPortSM Features—Opening a Gateway to the World. C.
171 . The table organizes the energy efficiency instruments into five categories: • • • • • General Energy supply & delivery Industry (including agriculture and waste management) Buildings Transport The general category includes policies and programs that broadly apply to the economy as a whole. Parmenter and Cecilia Arzbaeher of Global Energy Partners. Some are regulation-driven and others are market-driven.Chapter 9 Policies & Programs to Encourage End-use Energy Efficiency* In order to maximize energy efficiency improvements. Gellings and Patricia Hurtado. Specific instruments include subsidies *Based in part on material prepared by Clark W. and monitoring of policies and programs is required by international government bodies and organizations. Kelly E. corporations. There are many proven instruments for achieving energy efficiency results. Table 9-1 lists a variety of policy- and program-instruments that have been used successfully and have the potential to yield significant energy efficiency improvements. city governments. regional coalitions. Ultimately. national governments. high level leadership in the development. LLC. The effectiveness of specific policies and programs will be a function of their design. etc. stringency. energy companies. state governments. implementation. and realistic but aggressive targets need to be established. Appropriate strategic plans need to be devised. gaining the cooperation and dedication of individual energy end-users will be essential to produce the magnitude of response necessary to achieve targets for energy savings. and level of implementation.
and Measures for G8 Countries. NY. 2. Bosch. International Energy Agency.Table 9-1. Realizing the Potential of Energy Efficiency. A. United Nations Foundation. Dave. France: 2007. P. Cambridge University Press. Targets. Examples of Policies and Programs for Achieving Energy Efficiency Improvements 172 The Smart Grid: Enabling Energy Efficiency and Demand Response Sources: 1. Policies. Cambridge. 3. L. DC: 2007. . Energy Use in the New Millennium: Trends in IEA Countries. USA: 2007. O. United Kingdom and New York. Meyer (eds). Climate Change 2007: Mitigation. R. R. Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Washington. Davidson. R. Paris. B. Metz.
minimum standards of energy efficiency for key types of equipment including motors. The concept of tradable certificates for energy efficiency is analogous to approaches taken for green certificates and CO2 trading.Policies & Programs to Encourage End-use Energy Efficiency 173 for research and development. improved power supply and delivery infrastructure (including development of a “smart grid”). leadership in procurement of energy-efficient equipment. tax incentives.). subsidies. energy performance contracting. and facilities (e. boilers. voluntary and negotiated agreements.g. negotiated improvement targets. implementation of demand-side management programs. carbon tax. research initiatives. energy efficiency obligations and quotas. targets of meeting a larger portion of future electricity demand with energy efficiency. Some of the potential actions are development of minimum standards of efficiency for fossil-fuel-fired power generation. incentives for private sector investment. reduced subsidies for fossil fuel. grants. and compressors. vehicles. innovative rate structures including those that decouple profits from sales to encourage energy efficiency. carbon charges. and benchmarking of energy efficiency. and loans. process-specific energy efficient technologies. leadership in procurement of energy efficient buildings. and introduction of tradable certificates for energy savings. greater use of combined heat and power. etc.. public goods charges to fund energy efficiency programs. direct contact. tax incentives. incentives. media. Some of the main opportunities include stronger building codes and appliance standards. in which an energy service company pays the capitals costs of the energy efficiency measures and is paid back by the energy savings. education and . but applies to energy savings and meeting energy efficiency targets. reduced natural gas flaring to prevent waste of valuable resources and to reduce emissions. and trade allies. advanced lighting initiatives aimed at phasing out inefficient lighting and promoting energy efficient lighting and advanced controls. The energy supply & delivery category encompasses actions directed at energy companies. labeling and certification programs. pumps. The industry category consists of energy efficiency instruments such as strategic energy management. There are many policy and program opportunities in the buildings category. public information and education to increase awareness (such as via mailings. energy management systems. Some of the policies and programs extend to the agriculture and waste management categories. by government or high-profile corporations).
Examples 9-2 to 9-6 are national-level examples. and corporate levels. supporting a market exporting energy efficient technologies. and detailed billing. fuel. In addition to the policies and programs listed in the table. but that each . taxes on vehicle purchases. Multi-National Level In 1999. infrastructure planning to optimize routes.. advanced vehicle design and new technologies (e. and minimizing the trade of inefficient or lesserefficient technologies (UN Foundation. routes. national.174 The Smart Grid: Enabling Energy Efficiency and Demand Response information. Further. making investments in the human and institutional resources required by the countries to maximize efficiency. 2007). Example 9-8 is a citylevel example. are likely to be those that address energy requirements for economic development while simultaneously considering environmental impacts and costs. traffic flows and general efficiency. city. Example 9-7 is a state-level example. The most successful policies and programs. and leadership in procurement of energy-efficient vehicles. mode switching to more efficient forms of transport. Example 9-1 is a multi-national-level example. the United Nations Foundation report suggests establishing loan guarantee funds for investments in efficiency. mandatory audits and energy management requirements. and schedules. mass transit improvements to make it more desirable to the general public. POLICIES AND PROGRAMS IN ACTION The following sub-sections present nine examples of the types of energy efficiency policies and programs currently underway at the multi-national. Specific instruments are improved fuel economy. there are also potential policies related to aiding transition and developing nations. mandatory fuel efficiency standards. plug-in hybrid electric vehicles).g. state. and Example 9-9 is a corporate-level example. Policy and program instruments applicable to the transport category relate to vehicle and fuel efficiency as well as to shifting transportation modes. particularly for developing countries. greater allowances for telecommuting. the IEA proposed that all countries adopt the same definition and test procedure. and parking. the International Energy Agency (IEA) proposed that all countries harmonize energy policies to reduce standby power to 1 Watt or less per device in all products by 2010. For example.
” Fact Sheet. typically ranging from 0. 2. The voluntary Code of Conduct in Europe has been expanded to cover standby power in external power supplies. This would apply to all products with the exception of products already regulated by an efficiency standard with a test procedure that captures standby power use. M. standby requirements increasingly are part of wider energy efficiency regulations. Standby Power Use and the IEA “1-Watt Plan. Korea and the U. Japan and California are currently the only two regions that have adopted regulations. The primary lesson learned from the 1-Watt Initiative is that it is difficult and expensive to target policies towards individual devices. the IEA now proposes a uniform approach to standby power requirements in all products. Ellis. An internationally sanctioned test procedure for standby power was adopted by the International Electrotechnical Commission (IEC 62301) in 2005. Presentation. the Norwegian Ministry of Petroleum and Energy (MPE) established an energy efficiency agency: Enova. 2007. National Level: Norway In 2002. it is estimated that worldwide standby power currently accounts for 480 TWh each year. the total power use of all devices drawing standby power is substantial because of the current and even higher expected proliferation of devices. Indeed. Australia. However. May. France: April 2007. International Energy Agency. As a result. and broadband modems.S. Berlin. Paris. International Energy Agency. Canada.5 to 10 Watts per device.Policies & Programs to Encourage End-use Energy Efficiency 175 country use measures and policies appropriate to its own circumstances.S. this procedure is specified and used extensively. For example. Enova is funded from a .. and China are considering regulations. set-top boxes. Today. To date. there have been several accomplishments related to the 1-Watt Initiative: The G8 has committed to promoting the 1-Watt Initiative. Sources: 1. Standby Power and the IEA. Korea. IEA estimates standby power use could be reduced by as much as 60 to 80%. While the standby power use for most small devices is relatively small. have implemented government procurement. or products with special features such as medical devices. Many countries around the world use voluntary endorsement labels. New Zealand. the U..
The main criterion used by Enova for selecting energy efficiency projects is the project’s investment aid per unit of energy saved. Similarly.176 The Smart Grid: Enabling Energy Efficiency and Demand Response levy on the electricity distribution tariffs. the inherent incentives for a company to signal high investment costs and high energy savings are somewhat reduced. White Plains. Numerous companies use the results from the energy efficiency projects to promote their commitment to corporate social responsibility. Enova’s savings goal of 12 TWh represents ~5% of total energy use in Norway). .) Enova uses a standard net present value approach to assess the profitability of a project. the aid is reduced proportionally. or grants. and M. 2007. Enova’s results and activities in 2006. Its 2007 budget is $200 million. The results from the Norwegian energy efficiency investment model are promising. (In Norwegian). the grants have some obligations attached. if the energy savings are not met. New York: July 24-27. Enova: 2007. The lower the investment aid per unit of energy saved. Enova had contractual agreements for an aggregated savings of 8. Enova provides investment aid. However. (Total net energy use in Norway was 222 TWh in 2006. Enova primarily relies on improvements in industrial energy efficiency to achieve its goal. Investment Aid and Contract Bound Energy Savings: Experiences from Norway. These grants may cover as much as 40% of the investments costs. either through improved end-use energy efficiency or increased production of renewable energy. 2. On the other hand.3 TWh/year. Contractual agreements associated with industrial energy efficiency projects accounted for 2. Enge. (The maximum of 40% is imposed by state guidelines. if the actual investment costs are higher than the estimated investment costs or the energy savings exceed the estimated energy savings. As a result. or 26% of total aggregated energy savings.2 TWh/year. Total supply and use of energy. 1997-2006. The goal of Enova is to achieve reductions in energy use of 12 TWh by 2010. Enova’s mission is to promote energy efficiency and renewable energy generation in a consistent and comprehensive manner in Norway. if the actual investment costs are lower than the estimated investment costs. Sources: 1. By the end of 2006. Sandbakk. Thus. the amount of the grant still remains the same. Statistics Norway. to industry. 2007 Summer Study on Energy Efficiency in Industry. S. 3. Specifically. Holmen. the more likely the aid will be granted. Statistisk Centralbyra. K.. For example. parts or all of the investment aid may have to be returned.
This also makes energy supply available to more customers. The CFL deployment has also resulted in a reduction of 6% in Ghana’s electricity demand. Energy for Sustainable Development: Energy Policy Options for Africa. Top priority end-use technologies identified include replacing incandescent lamps with Compact Fluorescent Lamps (CFLs) and boiler efficiency enhancements. Educating people on the supply-side typically involves one paid person for each 1 MW. educating end-users in good energy practice is a major task of national proportions. installation task forces. new renewable energy production is popular. For example. It is easier to educate people on the supply-side than on the demand-side. Since the assessment. The goal of the TNA is to identify various technology development and transfer programs that can potentially reduce greenhouse gas emissions and contribute to the country’s sustainable development. $10 million to the Ghana economy.Policies & Programs to Encourage End-use Energy Efficiency 177 National Level: Ghana African countries primarily focus on energy-efficient and sustainable supply-side energy initiatives. One substantial barrier to increased end-use energy efficiency in Africa is the great need for education. One case-in-point is Ghana. it is typically more cost-effective and optimal from a sustainable perspective to improve demand-side energy efficiency. while educating industry and business personal in efficient energy end-use involves hundreds to thousands of people per MW capacity. Ghana submitted a Technology Needs Assessment (TNA) report to United Nations Framework Convention on Climate Change (UNFCCC) in 2003. The CFL promotion policies have been sustainable and self-financing. It is estimated the new CFL market has added U. UN-ENERGY/ Africa: 2007. However. The figure increases to tens of thousands of consumers per MW capacity if the domestic and general public is included. which is important in many supply-limited regions of Africa. Some African countries have endeavored to re-orient its energyefficiency initiatives to include both supply-side energy production and demand-side end-use. . and sales through retail stores.S.S. Ghana has experienced a dramatic increase in the use of CFLs primarily as a result of changes in the country’s import tariffs. Sources: 1. As a result. and received major funding shortly thereafter from the United Nations Development Program (UNDP) and technical support from the National Renewable Energy Laboratory in the U.
There will also be a motorway toll charge for trucks based on their CO2 emissions. primarily through the use of modern. State subsidies are available to anyone that renovates a house or an apartment in an energy-efficient manner.5% to 25% by 2020. UK: 2007. Since combating climate change is of great importance in German energy policy. There will be increased support for a tenant’s rights related to energy efficiency. Germany has made climate and energy central themes of its presidencies of both the European Union and the G8. The Economics of Climate Change: The Stern Review. as a result. replacement of inefficient heating systems. The Smart Grid: Enabling Energy Efficiency and Demand Response Stern.H. National Level: Germany Increased energy efficiency in both energy supply and end-use are critical to the success of Germany’s ambitious plan to reduce greenhouse gas emissions by 40% by 2020. these certificates will show the building’s current energy use and what energy efficiency measures are available.a Therefore a variety of energy efficiency policies affecting the supply-side and the demand-side are being implemented or will be introduced in the near future. Germany currently presides over both the Council of the European Union and the G8. the European Union has committed to a reduction of 30% in greenhouse . A few examples are provided below. German energy companies will receive 15% fewer emissions allowances to stimulate innovations in energy-efficient power plant technology.178 2. and for new energy-efficient windows. Germany aims to increase the share of combined heat and power in its electricity generation from 12. A motor vehicle tax that is calculated on the basis of CO2 emissions rather than the size of the vehicle will be introduced soon in Germany. the tenant will be allowed a rent reduction. the heating costs are high.. Cambridge. N. highly efficient gas and coal power plants with carbon capture and storage and the increased use of combined heat and power plants. subsidies are available for insulation. For example. Energy producers are required to increase efficiency by 3% each year. Starting in 2008. For example. Energy certificates are going to be required for all new and existing buildings. If the landlord of a property does not modernize the property and. ——————— aIn comparison. Cambridge University Press.
China’s National Development and Reform Commission (NRDC) determined energy savings targets for each enterprise. Department of Energy (DOE) and NDRC recently signed a memorandum of understanding concerning . Nature Conservation and Nuclear Safety. However. both GDP and energy use have been growing faster recently (close to 10% each).” Herald Tribune. representing about half of the total. by 20% between 2005 and 2010. NRDC also held training workshops in the fall of 2006 for all of the enterprises.5% from 2005 to 2010. many have found this task difficult because of the lack of qualified energy auditing personnel. September 2007. Over the summer of 2006. the U. Steel and chemical industries account for the majority of enterprises included in the program.9 EJ (or 2. the participants have been requested to conduct energy audits and develop energy actions plans. defined as energy use per unit of gross domestic product (GDP). However. thus energy use can only increase at an annual growth rate of 2. The steel and iron industries also account for ~40% of total energy used by the 1000 enterprises.8 Quads) by 2010. Sources: 1. 2007.7 EJ in 2004. National Level: China China’s Five Year Plan for 2005-2010 established an ambitious goal of reducing energy intensity. These 1000 enterprises used 19. July 4. 2. To address this barrier.S. Federal Ministry for the Environment. followed by the petroleum/petrochemical industry (~15%). achieving the 20% energy intensity target by 2010 will require a reduction of China’s energy use of 19 EJ (or 18 Quads). The aggregated goal for the 1000 enterprises is to achieve energy savings of 2.Policies & Programs to Encourage End-use Energy Efficiency 179 gas emissions by 2020 in the case of an international agreement. Taking Action Against Global Warming: An Overview of German Climate Policy. and the chemical industry (~15%). This translates into an average reduction of 4% per year. As a result. and to 20% in any event. Since then. which represents a third of China’s total energy use and close to half of China’s industrial energy use. “Merkel confronts German energy industry with radical policy overhaul. The goal assumes an average annual GDP growth rate of 7. China has created the Top-1000 Energy-Consuming Enterprises program which sets energy-saving targets for the 1000 largest energy-consuming enterprises in China. To realize the 20% energy intensity reduction goal.8%.
U. they have one of the lowest levels of greenhouse gas emissions per gross domestic product (GDP) in the world.180 The Smart Grid: Enabling Energy Efficiency and Demand Response industrial energy efficiency cooperation.S. DOE energy experts will identify energy-saving opportunities and provide information on U. Price. and combined heat and power units. industry restructuring.. “Constraining Energy Consumption of China’s Largest Industrial Enterprises Through the Top-1000 Energy-Consuming Enterprise Program. National Level: Japan Japan has been a world leader in implementing energy efficiency measures. 3. U. This is due to reductions in the energy intensity of industrial processes. 2. As part of the energy audits. September 14. Industry Energy efficiency achievements in Japan’s industrial sector have been significant. Department of Energy. signed in San Francisco. 2007.S. Representative achievements for each of these sectors are summarized below. Press Release. Current energy use is at 1970 levels even though the sector has experienced large economic growth. fired heaters. The first phase of this effort involves a team of DOE-assembled industrial energy efficiency experts along with a similar team assembled by NRDC to conduct energy audits jointly at 8-12 enterprises from the “Top 1000” program. and transportation sectors. and energy savings in industrial facilities.S. Japan’s 1979 Rational Use of Energy law and its subsequent amendments cover various energy efficiency programs and policies that span the industrial. Sources: 1. July 24-27. efforts are still underway to reduce the intensity of energy use and greenhouse gas emissions in the industrial sector because it accounts for nearly half of Japan’s energy use. 2007. and W. Additionally. White Plains. buildings. DOE to Conduct Energy Efficiency Audits on up to 12 Facilities. September 12. and China Sign Agreement to Increase Industrial Energy Efficiency. equipment suppliers that can assist in implementing improvements. New York. L. Xuejun. U. Department of Energy. Specific energy efficiency efforts include a requirement for medium and large factories to appoint energy conservation .S. Memorandum of Understanding between the Department of Energy of the United States of America and the National Development and Reform Commission of the People’s Republic of China Concerning Industrial Energy Efficiency Cooperation. DOE plans to identify potential demonstrations for energy-efficient boilers. As a result.” 2007 Summer Study on Energy Efficiency in Industry. Despite improvements. 2007.
150 stores were considered active promoters of energy-efficient products. To set an example for consumers. in 1997. and has set a goal of reducing CO2 emissions in the year 2010 to below 1990 levels for targeted industrial businesses. Japan introduced an Energy-Savings Labeling System in August 2000 to inform customers on the energy use characteristics of end-use devices. For each type of appliance. As a result of the Top Runner Program. This program specifies standards that are equal to or higher than the best available products on the market. the energy efficiency of many end-use appliances and devices has increased substantially. energy use in Japan’s buildings sector continues to rise due to increased proliferation of electronic devices.Policies & Programs to Encourage End-use Energy Efficiency 181 administrators. The standards are continuously reevaluated. Japan has created Top Runner standards for fuel efficiency in passen- . Nippon Keidanren. the efficiency of air conditioners improved by about 40% in 2004 relative to 1997. as well as a requirement for them to submit energy conservation plans and reports detailing energy consumption. The plan encourages voluntary energy efficiency actions by industry. For example. In addition. To help encourage the sales of energy efficient devices. Another effort relates to a Voluntary Action Plan introduced by the Japan Business Federation. an Energy-Efficient Product Retailer Assessment System was introduced in 2003 to tract and evaluate sales efforts. Buildings Though the energy efficiency of appliances has steadily improved. As of the first of the year. growing population. Incentives are also offered to encourage integrated heat and electricity management at plants and office buildings. Japan has established the Top Runner Program to develop high energy efficiency standards for electrical appliances and devices. Japan established a procurement policy in April 2001 to encourage government entities to purchase energy-efficient end-use equipment for offices and public buildings. To address this problem. Transportation To reduce greenhouse gas emissions from the transportation sector. the program sets a mandatory efficiency requirement for manufacturers and importers to achieve by a specified target year. Procurement efforts by the government help to create markets for new technologies and to increase market penetration of the products. and the desire for more conveniences.
and complete fixtures. ceiling fans. For shippers and large transportation businesses. Many pilots and fullscale programs were initiated in subsequent years to address capacity limitations. Many of these programs are implemented by the state’s three large investor-owned electric utilities: Pacific Gas & Electric (PG&E). municipal utilities are implementing a variety of programs. and SDG&E.182 The Smart Grid: Enabling Energy Efficiency and Demand Response ger vehicles. The program was implemented by PG&E. and 50 ceil- . either together or separately. The other type provided instant rebates to consumers at the point-of-sale.S. “An Overview of Efforts in Japan to Boost Energy Efficiency.502. Progress was tracked by using data on the number of products delivered by manufacturers and retailer sales information. 2007.. the government requires that energy-conservation plans and reports be submitted. J. Southern California Edison (SCE). 6. which was first offered in 2002. 24. The purpose of the 2002 Statewide Residential Lighting Program was to encourage greater penetration of energy efficient lamps and fixtures in the residential sector. the government offers incentives for hybrid vehicles in the form of tax breaks. One type provided rebates to manufacturers to lower wholesale costs. The Statewide Residential Lighting Program was designed in response to the 2001 energy crisis experienced in California.518 lamps. In all. State Level California is one of the leading States in terms of energy efficiency in the U. Sep.736 torchieres. In addition. and San Diego Gas & Electric (SDG&E).932 fixtures. Each utility had in-house management responsibilities. subsidies. The program consisted of two types of incentives. and low-interest loans. The government also offers subsidies for vehicles equipped with an automatic feature to reduce idling. torchieres. The products covered included compact fluorescent lamps (CFLs). including the Statewide Residential Lighting Program and other energy efficiency and demand response efforts. Source: Edahiro. SCE. The program leveraged relationships with manufacturers and retailers established in previous lighting programs. One representative example of California’s achievements is the California Statewide Residential Lighting Program.” JFS Newsletter. In addition. 5. There are a large number of effective energy efficiency programs currently in place in California.
E. commercial. Portland’s successful implementation of the energy policy is primarily a result of the city first focusing on its internal buildings and facilities. National Energy Efficiency Best Practices Study. Sources: 1. Portland adopted a new energy policy that included extensive research and broad community participation of more than 50 public and private groups and associations. Portland adopted the first local energy plan in the U. waste reduction. transportation. City Level The city of Portland. has been an international leader on community-based energy policy for almost three decades. 2004. and recycling. The estimated program accomplishments were 162. The 1979 energy policy included the establishment of an Energy Office and an Energy Commission. and 21. . This equates to a reduction in emissions of about 100 thousand metric tons of CO2 per year. The 1990 Energy Policy contained about 90 goals for city operations. Weatherization in more than 22. and transportation sectors) by 2010. Oregon. The energy savings currently equal $2 million per year or more than 15% of the city energy bill. New residential and commercial state energy codes. energy efficiency. 2. The total program cost was $9. edited by F. C.Policies & Programs to Encourage End-use Energy Efficiency 183 ing fans with bulbs were rebated during the 2002 program year. Berkeley.000 apartment units. Goswami. energy supply. A few examples of Portland’s energy policy successes include: Energy efficiency improvements in more than 40 million sq. R1—Residential Lighting Best Practices Report. New York.. “Demand-side Management. telecommunications. Gellings. In 1979. CA: Dec. Parmenter. the city created the City Energy Challenge Program to reduce city energy costs by $1 million by 2000. of commercial and institutional space. CRC Press.4 Million. The overall goal set in the 1990 Energy Policy is to increase energy efficiency by 10% in all sectors of the city (including the residential. and the energy costs have been reduced further.Y. Specifically. This goal was achieved. Vol. NY: 2007.888 MWh in energy savings. Reduction in per capita household energy use by 9%. Similar lighting programs have been offered in the years since 2002.” in Handbook of Energy Efficiency and Renewable Energy.4 MW in demand savings.. In 1990. Kreith and D. industrial. and K.ft.W. as a response to the OPEC Oil Embargo.S. Quantum Consulting Inc.
and multi-space smart parking meters.230 stores and 40 lamps per store. green. Additionally.6 billion customer visits to Wal-Mart stores each year. Attaining its goal of selling 100 million CFLs by the end of 2007 may not be too difficult. including water quality monitoring stations. Its goal is to sell one CFL to each of its 100 million customers during the year. Retrofit of all red. A typical Wal-Mart store has 10 models of ceiling fans on display.5% since 1993 when Portland became the first U. Oregon. About 20 million metric tons of greenhouse gases would be eliminated—comparable to taking 700. each with four lamps. A Wal-Mart staffer asked what difference it would make if the incandescent lamps in all ceiling fans on display in every Wal-Mart store were converted to CFLs.000 singlefamily homes. and flashing amber traffic signals to light emitting diodes (LEDs). Wal-Mart announced its campaign to sell 100 million CFLs by the end of 2007 at its Wal-Mart and Sam’s Club stores. and Use of a wide range of solar-powered equipment and fleet. Portland’s greenhouse gas emissions have fallen by 12. the decision to go . all it will take for Wal-Mart to meet its goal is for one customer out of every 60 that enter the store to buy a CFL.000 lamp conversions. that is nearly 130. once the numbers were verified. Considering that 90% of Americans live within fifteen miles of a Wal-Mart store and there are 6. http://www.com/. its goal would save its customers as much as $3 billion in electricity costs over the life of the CFLs.000 cars off the road.portlandonline. city to adopt a strategy to reduce emissions. parking meter repair trucks. Corporate Level In late 2006.184 The Smart Grid: Enabling Energy Efficiency and Demand Response Increased bicycle and transit transportation. At first there was skepticism when it was estimated that changing out those lamps would save nearly $6 million in electric bills annually. Portland’s goal is to reduce greenhouse gas emissions to 10% below 1990 levels by 2010. According to Wal-Mart. on a per-capita basis. With 3. Source: Official website of City of Portland. But. The energy savings would be equivalent to that used by 450.S. if achieved. Wal-Mart officials began talking about ways CFLs could help their customers save money. In late 2005. sewer emergency investigation trucks.
Policies & Programs to Encourage End-use Energy Efficiency
ahead was quickly made. Wal-Mart’s CFL goals are just part of its overall sustainability program. The program goals include: Being supplied by 100% renewable energy; Creating zero waste; and Selling products that sustain the earth’s resources and environment. Towards that end, Wal-Mart opened the first two stores in a series of high-efficiency stores that will use 20% less energy than their typical Supercenter. One store opened on January 19, 2007 in Kansas City, MO, and the other opened on March 14, 2007 in Rockton, IL. Wal-Mart also has two living laboratories (located in Aurora, CO, and McKinney, TX) where they demonstrate and test new energy efficient technologies. Sources:
1. 2. www.walmartfacts.com, accessed 2007. “Wal-Mart Continues to Change the Retail World—One CFL at a Time,” Power Tools, Winter 2006-2007, Vol. 4, No. 4, Global Energy Partners, LLC, Lafayette, CA: 2007.
ENERGY EFFICIENCY CHALLENGES IN THE MIDDLE EAST AND NORTH AFRICA The region encompassing the Middle East and North Africa (MENA) was a focus of the IEA’s World Energy Outlook 2005 (International Energy Agency, 2005). This region has a high potential for energy efficiency gains on both the demand-side and the supply-side. A large share of their end-use devices as well as electricity generation capacity is less efficient than in OECD countries. One of the primary challenges to demand-side energy efficiency is the structure of the energy market. This region is characterized by some of the lowest energy prices in the world. Much of the electricity supplied is heavily subsidized. Electricity rates are particularly under-priced in Iran, Egypt, and countries in the Persian Gulf. In some areas, significant quantities of electricity are lost due to illegal connections despite the low energy costs; in other cases, customers’ non-payment of bills is a problem. The low rates present an obstacle to market-driven improvements in end-use energy efficiency. While, in many cases, energy price increases often result in a greater consumer demand for energy-efficient technologies, this price incentive is lacking in the MENA region. Moreover, the approach of raising rates to generate the incentive to purchase
The Smart Grid: Enabling Energy Efficiency and Demand Response
energy-efficient technologies (or some type of price reform) would be challenging to implement in the MENA region due to the low income level of many of the customers. Two of the primary areas of opportunities for end-use energy efficiency improvement are space cooling and desalination. Demands for air conditioning are growing, and the space cooling efficiency in much of the region is below that of the world average. District cooling is one alternative currently receiving significant attention; however penetration is still low (due to the lack of incentive). The region is also home to the largest desalination capacity in the world and the demand for fresh water is expected to triple in some countries such as Saudi Arabia, the UAE, and Kuwait by 2030. Improving the efficiency of desalination processes and combining desalination with power generation are other methods to address energy efficiency. One of the challenges of combined water and power is the mismatch between the electricity demand, which is higher in the summer than in the winter, and the water demand, which is relatively constant. The power generation efficiency in this region is also on-average significantly lower than in OECD countries. For example, gas-fired plants have average efficiencies of ~33% compared with 43% in OECD and oil-fired plants have average efficiencies of ~34% compared with 42% in OECD. The MENA region often expands capacity with lowerfirst-cost, less efficient supply-side technologies because of the availability of inexpensive fuel. As a result, opportunities to improve supply-side efficiency are substantial. There is a growing need for supply-side investments to meet increasing electricity demand, which is projected to increase by 3.4% per year through 2030. Some of this investment could potentially be offset cost-effectively by energy efficiency improvements on both the supply-side and the demand-side. Such improvements would also free up resources for export. The challenge is overcoming the barriers. CONCLUSION There is a renewed interest in energy efficiency due to increasing worldwide demand for energy, availability constraints, environmental issues, and economic considerations. Energy efficiency supports sustainable development, energy security, environmental stewardship, and
Policies & Programs to Encourage End-use Energy Efficiency
saves money for both energy suppliers and energy end-users. Energyefficiency measures can begin right away to free up additional supply and to defer the construction of new generation capacity. Energy efficiency is environmentally friendly and cost-effective relative to building new capacity. Much of the technology to enhance energy efficiency is here, yet it is underutilized. Fully implementing all feasible available technology has the potential to make significant improvements in energy efficiency. Nevertheless, additional research and technology innovations will be required to accelerate energy-efficiency improvements in order to meet the expected worldwide growth in energy demand. We already have the experience to develop new technologies and to implement energy-efficiency policies and programs. The oil embargos of the 1970s proved that significant change along these lines is possible with concerted efforts. This book describes a variety of proven tools at our disposal to meet this renewed mandate for energy efficiency, including policies and programs, market implementation methods, and energy-efficient technologies. References
Realizing the Potential of Energy Efficiency, Targets, Policies, and Measures for G8 Countries, United Nations Foundation, Washington, DC: 2007. World Energy Outlook 2005: Middle East and North Africa Insights, International Energy Agency, Paris, France: 2005.
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For voluntary energy efficiency and demand response programs, such as those that might be offered by energy service companies, the success of the program in meeting targets for energy efficiency greatly depends on the level of market penetration achieved. (Note: in this discussion paper, energy efficiency programs are assumed to encompass traditional energy efficiency programs as well as demand response programs.) Planners can select from a variety of methods for influencing consumer adoption and acceptance of voluntary energy efficiency programs. The methods can be broadly classified in six categories. Table 10 1 lists examples for each category of market implementation method. The categories include: • Consumer Education: Many energy suppliers and governments have relied on some form of consumer education to promote general awareness of programs. Brochures, bill inserts, information packets, clearinghouses, educational curricula, and direct mailings are widely used. Consumer education is the most basic of the market implementation methods available and should be used in conjunction with one or more other market implementation method for maximum effectiveness. Direct Consumer Contact: Direct consumer contact techniques refer to face-to-face communication between the consumer and an energy supplier or government representative to encourage greater consumer acceptance of programs. Energy suppliers have for some time employed marketing and consumer service representatives to provide advice on appliance choice and operation, sizing of heating/cooling systems, lighting design, and even home economics. Direct consumer contact can be accomplished through energy audits, specific program services (e.g., equipment servicing), store fronts where information and devices are 189
The Smart Grid: Enabling Energy Efficiency and Demand Response displayed, workshops, exhibits, on-site inspection, etc. A major advantage of these methods is that they allow the implementer to obtain feedback from the consumer, thus providing an opportunity to identify and respond to major consumer concerns. They also enable more personalized marketing, and can be useful in communicating interest in and concern for controlling energy costs.
Trade Ally Cooperation: Trade ally cooperation and support can contribute significantly to the success of many energy efficiency programs. A trade ally is defined as any organization that can influence the transactions between the supplier and its consumers or between implementers and consumers. Key trade ally groups include home builders and contractors, local chapters of professional societies, technology/product trade groups, trade associations, and associations representing wholesalers and retailers of appliances and energy-consuming devices. Depending on the type of trade ally organization, a wide range of services are performed, including development of standards and procedures, technology transfer, training, certification, marketing/sales, installation, maintenance, and repair. Generally, if trade ally groups believe that energy efficiency programs will help them (or at least not hinder their business), they will likely support the program. Advertising and Promotion: Energy suppliers and government energy entities have used a variety of advertising and promotional techniques. Advertising uses various media to communicate a message to consumers in order to inform or persuade them. Advertising media applicable to energy efficiency programs include radio, television, magazines, newspapers, outdoor advertising, and point-of-purchase advertising. Promotion usually includes activities to support advertising, such as press releases, personal selling, displays, demonstrations, coupons, and contest/awards. Some prefer the use of newspapers or the Internet; others have found television advertising to be more effective. Alternative Pricing: Pricing as a market-influencing factor generally performs three functions: (1) transfers to producers and consumers information regarding the cost or value of products and
through innovative schemes can be an important implementation technique for utilities promoting demand-side options. Alternative pricing. (2) provides incentives to use the most efficient production and consumption methods. These three functions are closely interrelated. For example.. 2007) services being provided. and (3) determines who can afford how much of a product. rate incentives for . Examples of Market Implementation Methods for Energy Efficiency Programs (Gellings.Market Implementation 191 Table 10-1. et al.
planners and policy makers can augment or mitigate the external influences. equipment installation or maintenance in exchange for participation. Incentives also reduce consumer resistance to options without proven performance histories or options that involve extensive modifications to the building or the consumer’s lifestyle. off-peak rates. but can expedite consumer recruitment. and other external influences that affect three major customer decisions: .192 The Smart Grid: Enabling Energy Efficiency and Demand Response encouraging specific patterns of utilization of electricity can often be combined with other strategies (e. rebates. promotional rates. etc. Pricing structures include time-of-use rates. By selecting the appropriate mix of market implementation methods. Figure 10-1 from EOLSS illustrates the customer characteristics. subsidized. taking into account the customer characteristics. but over a period of years. Such arrangements may cost the supplier more than the direct benefits from the energy or demand impact. • Direct Incentives: Direct incentives are used to increase short-term market penetration of a cost control/consumer option by reducing the net cash outlay required for equipment purchase or by reducing the payback period (i. increasing the rate of return) to make the investment more attractive. utilities. The consumer receives a financial incentive. to increase customer acceptance of the demand-side alternative being promoted.. so that the implementer can provide the incentives as it receives the benefits. implementation programs.. billing credits. direct incentives) to achieve electric utility demand-side management goals. Direct incentives include cash grants. seasonal rates. and allow the collection of valuable empirical performance data.e. buyback programs. and low-interest or no-interest loans.g. A major advantage of alternative pricing programs over some other types of implementation techniques is that the supplier has little or no cash outlay. and government entities have successfully used many of these marketing strategies. Energy suppliers. variable service levels. Typically. thereby obtaining the desired customer response. multiple marketing methods are used to promote energy efficiency programs. inverted rates. or very heavily. One additional type of direct incentive is the offer of free. Demand response programs incorporate alternative pricing strategies.
illustrated in Figure 10-2. are: • Market Segmentation—based on the load shape modification objectives.Market Implementation 193 Figure 10-1. information on customer end uses and appliance saturation. • . the market can be broken into smaller homogenous units so that specific customer classes are targeted. and other customer characteristics (from consumer research). Elements to consider in selecting the appropriate marketing mix. Factors Influencing Customer Acceptance and Response The Market Planning Framework • • • Fuel/appliance choice Appliance/equipment efficiency Appliance/equipment utilization The selection of the appropriate market implementation method should be made in the context of an overall market planning framework. Technology Evaluation—based on the applicability of available technologies for the relevant end uses and load shape objectives.
Selection of Market Implementation Methods—based on the above analyses and estimates of potential customer acceptance and response. Market Implementation Plan—based on the selection of the market implementation methods. Market Planning Framework the alternative technologies are evaluated and the profitability of specific appliances assessed.194 The Smart Grid: Enabling Energy Efficiency and Demand Response Figure 10-2. • • . • Market Share Analysis—based on estimates of customer acceptance. the appropriate mix of implementation method is evaluated and selected. an implementation plan is developed to define and execute the demand-side programs. the proportion of the total potential market that can be served competitively is estimated.
The methods used for market segmentation and target marketing can vary. Such barriers may include: • • • • • • • Low return on investment (ROI) High first cost Lack of knowledge/awareness Lack of interest/motivation Decrease in comfort/convenience Limited product availability Perceived risk FACTORS INFLUENCING CUSTOMER ACCEPTANCE AND RESPONSE A second important aspect is the stage of “buyer readiness. there is little or no perceived risk. Key questions to consider are: • • Do customers perceive a need to control the cost of energy and are they aware of alternative demand-side technologies? Where do customers go to search for more information and guidance on alternatives. the technology is likely to be well accepted with little need to intervene in the marketplace. Consumer research can identify where customers are in their decision process. However. and the customer is aware of the technology and has a favorable attitude toward it.” Customers generally move through various stages toward a purchase decision. the market implementation methods should be designed to overcome these barriers. The stage that a customer is in will have a bearing on the appropriateness of the market implementation method used. If a technology offers significant benefits to the customer. and what attributes and benefits are perceived for any given option? . if the customer acceptance is constrained by one or more barriers. depending on the customer characteristics and the technologies/end uses being addressed by the demand-side alternative.Market Implementation • 195 Monitoring and Evaluation—the results of implementation are monitored and evaluated to provide relevant information to improve future programs.
196 • The Smart Grid: Enabling Energy Efficiency and Demand Response How much interest is there in participating in a demand-side program. some of which may be interrelated. If results of market research indicate that customers in the awareness and interest phase prefer reliability. Identifying satisfied or unsatisfied customers is useful in terms of evaluating future market implementation methods. Incentive programs for trade allies may also be a consideration. Segmenting demand-side markets by end use. direct customer contact. and how can customers be influenced to move toward participation? What specific attributes and benefits must customers perceive in order to accept a particular demand-side technology? How satisfied are customers who participated in a previous demand-side program? • • Table 10-2 lists the applicability of Market Implementation Methods to overcome barriers to acceptance. then financial incentives for a particular demand-side technology may be a key consideration. the use of direct incentives is appropriate. word of mouth becomes an increasingly important source of customer awareness and interest. In addition. As a program is accepted and increases its market share. and advertising/promotion. perceived . bit lowering energy bills is a motivating factor. A final aspect of the buying process is customer satisfaction. and cost-competitive technology options. communicating to customers in advertising/promotion programs should be considered. Table 10-3 illustrates applicability to stages of buyer readiness. Service after the sale is extremely important and represents a form of marketing. To influence customer awareness and interest. if a significant source of information and influence is found to come from trade ally groups during the stage of customer purchase of replacement or new equipment. It must be re-emphasized that market segments can be defined using a number of criteria. emphasis can be placed on the use of customer education. If the results of consumer research indicate that customers in the purchase/adoption phase use a high implicit discount rate and that first costs are a barrier. If first costs are not an obstacle. comfort. a point of purchase and cooperative advertising program with trade allies should be considered. Answers to these questions are important in formulating a market implementation program. stage of buyer readiness.
and disadvantages of the methods discussed here. Applicability of Market Implementation Methods to Stage of Buyer Readiness barriers to acceptance. advantages.Market Implementation 197 Table 10-2. and other socio-demographic factors can suggest the appropriateness of alternative market implementation methods. Applicability of Market Implementation Methods to Overcome Barriers to Customer Acceptance Table 10-3. Note that the applicability. as compared to different types of demand-side .
educational curricula. vary significantly. Typically. clearinghouses. and direct mailings are widely used. and influence customer decisions to participate in a program.198 The Smart Grid: Enabling Energy Efficiency and Demand Response programs. Customer education is the most basic of the market implementation methods available and can be used to: • Inform customers about products/services being offered and their benefits. planners and policymakers select a mix of the methods most suitable to the relevant demand-side options. Generally improve customer relations. Increase the customer’s knowledge of factors influencing energy purchase decisions. Inform customers of the eligibility requirements for program participation. Advertising/ promotion campaigns can also be used to influence customer awareness and acceptance of demand-side programs (see discussion of advertising and promotion below). Customer Satisfaction Many energy suppliers and governments have relied on some form of customer education to promote general customer awareness of programs. or changes are made in an existing program. an implementation needs to notify its customers. Provide customers other information of general interest. increasing the general level of customer awareness is an important first step in encouraging market response. bill inserts. information packets. Detachable forms are frequently provided for customers seeking to request services or obtain more information about a program. • • • • • Whenever a new program is introduced. An increasing number of energy suppliers and governments provide booklets or information packets describing available demand-side programs. If a program is new. Increase the perceived value of service to the customer. Brochures. . Some have also established clearinghouses or toll-free telephone numbers to provide inquiry and referral services to consumers regarding demand-side technologies and programs.
heat pumps and thermal storage). sizing of heating/cooling systems. The major advantage of customer education techniques is that they typically provide a more subtle form of marketing. as well as information on demand-side programs and customer eligibility. home weatherization..g. and the applicability of renewable resource measures. benefits. weatherization. Program Services Involve activities undertaken to support specific demand-side measures including heat pumps. and costs. Customer education programs seek to increase customer awareness and interest in demand-side programs. Some education brochures describe the operation benefits and costs of demand-side technologies (e. Energy audits may last from 30 minutes to 3 hours. Direct Customer Contact Direct customer contact techniques refer to face-to-face communication between the customer and an energy supplier or government representative to encourage greater customer acceptance of programs.Market Implementation 199 Customer education has the widest applicability to demand-side measures. and cost from $70 to $200 to complete. Before customers can decide whether or not to participate in a program. and renewable energy . with the potential to influence customer attitudes and purchase decisions. They provide an excellent opportunity for suppliers to interact with customers and sell demand-side options. Energy audits also provide a useful service in obtaining customers feedback and responding to customer concerns. Customer education techniques should be used in conjunction with one or more other market implementation methods for maximum effectiveness. water heating improvements. implementers also provide do-it-yourself guides on home energy audits. Energy suppliers have for some time employed marketing and customer service representatives to provide advice on appliance choice and operation. and even home economics. lighting design. its eligibility requirements. building envelope improvements. Typically. Others focus on methods to reduce energy costs. and meter reading. they must have information on the program. Energy Audits Are particularly useful for identifying heating/air conditioning system improvements.
These inspections are frequently related to compliance with safety or code requirements and manufacturer specifications. energy suppliers. Inspection Typically includes an on-site review of the quality of materials and workmanship associated with the installation of demand-side measures. Store Fronts A business area where energy information is made available and appliances and devices are displayed to citizens and consumers. including conferences. and other demand-side technologies. appliances. and devices through direct contact. Direct customer contact methods are applicable to a wide range of demand-side options. They also enable more personalized marketing and can be useful in communicating interest in and concern for controlling energy costs. Workshops/Energy Clinics Special one- or two-day sessions that may cover a variety of topics. Mobile displays or designed “showcase” buildings can also be used. third-party financing. Direct customer contact methods are labor-intensive and may require a significant commitment of staff and other resources. Those can be provided by government employees. Exhibits/Displays Useful for large public showings. Also.200 The Smart Grid: Enabling Energy Efficiency and Demand Response resources. specialized training of personnel may be required. thus providing an opportunity to identify and respond to major customer concerns. fairs. Exhibits can be used to promote greater customer awareness of technologies. energy-efficient appliances. A major advantage of these methods is that they allow the implementer to obtain feedback from the consumer. Other issues relative to direct customer contact are: • Scheduling requirements and the need for responding to customer concerns in a timely and effective manner. Inspections offer the implementer additional opportunities to promote demand-side options. . contractors or trade allies. or large showrooms. including home energy conservation. Examples of such programs include equipment servicing and analyses of customer options.
• • • Trade Ally Cooperation Trade ally cooperation and support can contribute significantly to the success of many demand-side programs. For example.g. “Fair trade” concerns related to contractor certification for audits or installation. assist in developing and implementing demand-side programs. trade ally .. Refrigeration and Air Conditioning Engineers. trade associations (e. U. In performing these diverse services.g. and The Institute of Electrical and Electronic Engineers). maintenance. Liability issues related to inspection and installation programs.S. therefore.Market Implementation • 201 Potential constraints arising from the need for field service personnel to implement direct customer contact programs in addition to either other duties. including: • • • • • • Development of standards and procedures Technology transfer Training Certification Marketing/sales Installation. A trade ally is defined as any organization that can influence the transactions between the supplier and its customers or between implementers and consumers. Key trade ally groups include home builders and contractors. a wide range of services are performed.. Depending on the type of trade ally organization. and associations representing wholesalers and retailers of appliances and energy consuming devices.g. trade allies may significantly influence the customer’s fuel and appliance choice.. The Illuminating Engineering Society. Possible opposition of local contractors/installers to direct installation programs. American Institute of Architects. American Society of Heating. local chapters of professional societies (e. Trade allies can. and/or the appliance or equipment efficiency. and repair. the U. technology/product trade groups (e. local plumbing and electrical contractor associations). local chapters of the Air Conditioning and Refrigeration Institute and the Association of Home Appliance Manufacturers).S.
Advertising uses various . They can also provide valuable market data on technology sales and shipments. Trade ally groups can be extremely useful in promoting a variety of demand-side measures. certification requirements. Advertising and Promotion Energy suppliers and government energy entities have used a variety of advertising and promotional techniques. Generally. etc. Trade ally groups can also help reduce implementation costs. and comparison. sizing. and consumer response information that is useful in the design of utility programs. Plumbing and electrical contractors are concerned about the installation and serviceability of heating and cooling equipment. logistical. training needs. cooperative advertising/promotion. trade allies can provide technical. and whether an energy supplier promotional campaign will conflict with their peak service periods. Installation and service contractors often influence the sale of a demand-side technology. they will likely support the program. Considerable opposition may result if the program competes directly with trade ally businesses. may resist more expensive building design and appliances. therefore. Demand-side management programs are less likely to face concerns related to fair trade if the programs are co-sponsored with trade allies. manufacturers and retailers prefer to be informed at least six months in advance of an implementer’s intentions to promote end-use devices or appliances. To obtain the greatest benefit from trade ally cooperation. and supplying information on consumer purchase patterns. so that they can have sufficient stocks on hand to meet consumer demand. Also.202 The Smart Grid: Enabling Energy Efficiency and Demand Response groups can provide valuable information on major technical considerations and assist in the development of standards for operating performance. reimbursement of expenses. arranging sales inventory. Wholesalers and retailers are particularly valuable in providing cooperative advertising. Implementers will avoid much controversy and possible legal challenges by recruiting trade allies as partners in demand-side programs. if trade ally groups believe that DSM programs will help them (or at least not hinder their business). In addition. implementers must be willing to compromise and accommodate concerns and questions of allies related to product availability. paperwork. Builders are generally concerned about reducing first costs and. and are responsible for its proper installation and service.
merchandising and advertising design services. relatively longer usage in homes. specialized zone/area coverage for major metropolitan areas. television. and relatively poor reproduction. These have included appealing slogans. such as press releases. to name a few. Promotion usually includes activities to support advertising. and support services provided to advertisers. jingles. and specialized campaigns (e. A major disadvantage of magazine advertising is the inflexibility compared to spot radio and newspaper advertising. lower cost. hasty reading of articles and ads. Disadvantages of newspapers include their relatively short life in the home. personal selling. displays. Other promotional techniques used have been awards. inserts. Readership data from magazines can help a utility decide whether magazine advertising is appropriate. and humorous conversations. limited lead time in placing advertisements. target marketing (by placing ads in certain sections of newspapers). and contest/awards. intensive coverage within a community. Some prefer the use of newspapers based on consumer research that found this medium to be the major source of customer awareness of demand-side programs. Others have found television advertising to be more effective. and residential home energy rating systems. Newspaper Advertising Newspaper advertising offers a number of advantages. as compared to magazines. Advertising media applicable to demand-side programs include radio.. Similar to customer education methods.Market Implementation 203 media to communicate a message to customers in order to inform or persuade them. Specialized regional editions of national magazines and local urban magazines offer the advantages of market sensitivity. associated prestige of the magazine. magazines. outdoor advertising and point-of-purchase advertising. energy-efficient home logos. A number of innovative radio and TV spots have been developed to promote demand-side measures. advertising and promotion have widespread applicability. flexibility in the length and type of com- . newspapers. and color preprints). demonstrations.g. including frequency of use. including flexibility in geographical coverage. coupons. Radio The use of radio also offers a number of advantages.
high production and broadcast costs. Disadvantages of television include the fleeting nature of messages. and indoor displays. Outdoor Advertising There are also various types of outdoor advertising that can be used.204 The Smart Grid: Enabling Energy Efficiency and Demand Response munication. Point-of-purchase displays used include appliance stickers. Posters are useful in high pedestrian traffic areas or in places where a large audience exists. window. Television The mass appeal of television is common knowledge and is illustrated by the large expenditures on television advertising. Point of Purchase Promotion Given the increasing trend toward self-service in retail outlets. limited advance planning. Rather obvious limitations of outdoor advertising are the brevity of the advertising message. The advantages of outdoor advertising are the ability to reach large numbers of customers at a low cost. in subways. Point-of-purchase displays are oftentimes designed to be consistent with the advertising themes used in other media. The messages must be simple and easy to comprehend. the limited effectiveness. Point-of-purchase advertising can cover such topics as product features. which reaches a very large audience. and in transportation stations. utility marketing programs. point-of-purchase displays are becoming very important. Smaller posters may be located on buses. limited longevity. and possible negative aesthetic impacts. The use of point-of-purchase displays in trade ally cooperative advertising should be seriously considered. and the limited data on listener characteristics and market share as compared to television advertising. audience selectivity. Billboards consist of multiple poster sheets and are particularly useful in large open vehicular and pedestrian traffic areas. the fleeting nature of the message. brand/service loyalty financing. Some media may be more useful than others in terms of moving . and models of appliance operation. and the lack of selectivity. There are also some limitations associated with the use of radio. and service/maintenance options. counter top. and mobility. The major advantage of point-of-purchase advertising is the relatively low cost and the proximity of the advertising message to the point of possible purchase. including fragmented coverage.
off-peaking water heating). etc. direct incentives) to achieve electric utility demand-side management goals. energy and demand control.g. Various pricing structures are more or less well-suited to different types of demand-side options. and some efficient equipment options. They can be useful for thermal storage. Alternative pricing. a multi-faceted and carefully scheduled advertising/promotional campaign is worthy of consideration as part of any demand-side management program plan. conservation. Seasonal rates similarly can be used with high-efficiency options. Alternative Pricing Pricing as a market-influencing factor generally performs three functions: • • • Transfers to producers and consumers information regarding the cost or value of products and services being provided. Advertising and promotion may be limited to those that encourage safety. For gas utilities. inverted rates used to encourage building envelope and high-efficiency equipment options. time-of-use rates may be generally offered or tied to specific technologies (e.. For utilities. For example. storage heating and cooling. Therefore. An important issue is the extent to which government or state regulatory authorities limit various types of advertising. Careful consideration must also be given to the need for statements regarding product liability and warranties (express or implied) in advertising demand-side technologies.g. . Some demand-side management technologies may or may not fall within the definition of allowable advertising. through innovative schemes can be an important implementation technique for utilities promoting demand-side options. Provides incentives to use the most efficient production and consumption methods. These three functions are closely interrelated. load management.Market Implementation 205 customers from the “awareness” stage to the “adoption” stage in purchasing a product or service. Determines who can afford how much of a product. rate incentives for encouraging specific patterns of utilization of electricity can often be combined with other strategies (e..
The degree of customer response is influenced by appliance ownership and climatic conditions. such as rebates. research on customer response to electric time-of-use rates indicates that: • • On average. and off-peak rates can be particularly applicable to thermal storage and water heating options. such as time-of-use rates and rates involving demand charges. but over a period of years. Promotional rates can be used to encourage economic development in an area. Households typically reduce the share of peak usage in weekday summer use by 3 to 9 percentage points (from 50 to 47-41%) in response to a 4:1 TOU rate.206 The Smart Grid: Enabling Energy Efficiency and Demand Response For both gas and electric utilities. the demandside programs. A major advantage of alternative pricing programs over some other types of implementation techniques is that the supplier has little or no cash outlay. which can sometimes amount to several hundred dollars per installation. depending on the characteristics of the customer. In addition. geographically-diverse areas. such rates do not lower the customer’s purchase cost.. Incentives also reduce customer resistance to options without proven . One potential disadvantage with some alternative pricing schemes. The customer receives a financial incentive. Customer education relative to the rate structure and related terminology may also be needed. For example. variable service levels can be offered on a voluntary basis as an incentive to reduce demand at certain times of the day. increasing the rate of return) to make the investment more attractive. Note also that detailed information regarding cost of service and load shapes is needed to design and implement rates to promote demand-side options. • Direct Incentives Direct incentives are used to increase short-term market penetration of a cost-control/customer option by reducing the net cash outlay required for equipment purchase or by reducing the payback period (i.e. and the specific rate structures. so that the implementer can provide the incentives as it receives the benefits. is the cost of metering. as do some other implementation techniques. considerable similarity exists in customer response patterns across several. Customer acceptance and response to alternative rate structures will vary.
or very heavily subsidized. Amounts may be tied to levels of energy or demand reduction or energy efficiency. Rebates Similar to cash grants. it indicates the more common forms of direct incentives for large-scale customer adoption.Market Implementation 207 performance histories or options that involve extensive modifications to the building or the customer’s lifestyle. Rebate levels are generally set in proportion to the relative benefits of the option to the supplier or implementer. and allow the collection of valuable empirical performance data. equipment installation or maintenance in exchange for participation. The individual categories of direct incentives include: • • • • • Cash grants Rebates Buyback programs Billing credits Low-interest or no-interest loans Each category is briefly detailed below. either as original equipment or as a replacement for an existing device. Such arrangements may cost the supplier more than the direct benefits from the energy or demand impact. Cash Grants These are payments usually one-time sums made to consumers who adopt one or more cost control options. The implementer generally estimates the expected average first-year energy . rebates are normally single payments made to consumers who install a specific option. While this list is not necessarily all-inclusive (variations and combinations of these incentives are often employed). Buyback Programs These are special incentives that reflect supplier cost savings resulting from the implementations of a mix of cost-control options. One additional type of direct incentive is the offer of free. They have been most often used with building envelope options and with efficient equipment and appliance options. but can expedite customer recruitment. or can be set simply at a level designed to encourage widespread customer response.
Rebate and cash grant programs have been praised by some for their administrative simplicity relative to loans. and are generally offered in proportion to the size of the connected load being controlled. Various types of direct incentives are applicable to many of the cost control/customer options in each of the major option categories. Billing credits have most often been used with energy and demand control options. as can the recordkeeping requirements. and thermal storage categories. can often allow consumers to pur- . and ceramic storage heaters. or without interest. Low-interest or No-interest Loans These are loans offered at below-market interest rates. and then determines its value based on differences between average and marginal costs or other cost criteria.208 The Smart Grid: Enabling Energy Efficiency and Demand Response use change (and any corresponding demand change) for a particular option through testing or analysis. low-interest loan programs are co-funded by the energy supplier and government or public agencies. They can often be used in combination to produce increased customer acceptance. however. Buybacks are most often used with building envelope options. They are frequently used to promote the use of high-initial-cost options in the building envelope. This amount is then normally paid to the customer’s installation contractor as a purchase price subsidy. for the purchase and installation of specific high-efficiency options. Rebates and grants have an added advantage to the consumer because they significantly lower first costs for new major appliances or other option purchases. The carrying costs to utilities of low-interest or no-interest loans can be great. by allowing home buyers and consumers to finance such expensive items as whole-house insulation. The supplier or implementer in effect “buys back” a portion of the consumer’s investment. Reduced interest loans. often increase the number of consumers willing to invest in these options. Low-interest loans. Billing Credits These are credits applied to a customer’s energy bill in return for installing a particular option. Sometimes. heat pumps. Direct Incentives and Demand-side Technologies Direct incentives are being used in a large number of demand-side management programs to encourage customer participation. efficient equipment and appliance.
Market Implementation 209 chase higher-priced options than they would otherwise with only a partial rebate. and the characteristics of the customer. and procurement of the necessary support materials.. then there will probably be no concern about fair trade law violations. the nature of the technology being promoted. Billing credits can allow the supplier to provide a substantial total incentive to the customer but in small annual amounts over a protracted period. the added costs of the financing program may be justified. • • .g. and administrative costs can be lower than those for loan programs. Measurable program goals (e. discussions with trade allies. implementers should be aware of potential fair trade or antitrust concerns. If the program is structured so that trade allies support it and also stand to gain from it. If an implementer establishes rational criteria for dealing with trade allies. training and equipment/facility procurement)—adequate time must be reserved for employee training. energy/demand sales or savings and customer contact quotas)—program goals should be well defined and measurable. adheres to those criteria. Both customer acceptance and response to direct incentive programs.e. and uses sound business practices. it is likely that the legality of incentives will not be challenged. The Market Implementation Plans Once careful consideration has been given to evaluating alternatives and the appropriate implementation methods have been selected. and must understand the overall cost-effectiveness of implementing the option. depend on the nature and size of the incentive. Pre-program logistical planning (i. This plan should contain: • Program objectives/general purpose—objectives of the market implementation plan must be communicated to all program personnel. however. an implementation plan should be formulated. and potential benefits and costs of these programs. Experience with direct programs indicates that participants in such programs are generally middle- to upper-class households. In developing direct incentive programs. The consumer must be able to afford the initial purchase. Thus.. Initial cash outlays are minimal. if the option produces sufficient benefit.
completing credit applications. decision points. Actual program implementation can be checked against the plan and major variances reviewed as they occur. and obtainable goals. The variety of activities and functional groups involved in implementing demand-side programs further accentuates the need for proper planning. in a direct load control program. The plan includes a set of carefully defined. measurable. Careful management is required to ensure efficient implementation. The programs are expensive and prudent planning will help assure program efficiency and effectiveness. The careful planning that characterizes other energy supply operations should carry over to the implementation of demand-side programs. Program Management The implementation process involves many different functional entities. such as meeting customer eligibility requirements. and post-inspection can be defined. device installation.210 • The Smart Grid: Enabling Energy Efficiency and Demand Response Program implementation procedures—it is a good idea to develop a program implementation flow chart and manual for all key program personnel. For example. a demand-side program should begin with an implementation plan. • • • PROGRAM PLANNING As with any sophisticated program. Management controls—management and program controls must be carefully defined and a customer communication program should be developed and integrated with the demand-side program. Program budget/accounting—program cost accounting should be adequately addressed. Managing such widespread activities requires a complete understanding and consensus of program objectives and clear lines of . Monitoring and evaluation procedures—develop a program evaluation plan in advance of program implementation that provides sufficiently for program data collection and recordkeeping and offers suitable feedback on program performance. A program logic chart can be used to identify the program implementation process from the point of customer response to program completion.
facilities. For whatever reason. Program Logistics Program support includes staffing. The need for cost accounting. monitoring employee productivity and quality assurance should be addressed. Many demand-side management programs include installing a specific piece of equipment or hardware that will alter energy use to benefit both the customer and the supplier. establishing an appropriate customer adoption program. Ongoing program management is also extremely important. A customer adoption plan that coordinates the use of mass media and other advertising and promotional activities (such as bill inserts and direct mail) should be carefully integrated into the implementation program. and training requirements. Consumer concerns should be addressed at all levels of program design and implementation. Selecting the Proper Equipment or Hardware Implementers need to evaluate a variety of conflicting factors if they are specifying the functional requirements for equipment or hardware. In the equipment selection process. used or marketed by the energy supplier as part of the demand-side management (DSM) program. equipment. if periodic status reports are required. It is always important to establish good rapport with customers. the use of incentives necessitates close monitoring of program costs. developing quality assurance programs. The sample list of functional responsibilities in an implementation program gives an indication of the activities that may be included in such a manual.Market Implementation 211 functional authority and accountability. and developing an installation and maintenance schedule. changes in demand-side technology (such as improvements in the efficiencies of space heating and cooling equipment) and evolving supplier needs (such as automation of the gas or electric utility’s distribution system) should be evaluated. the exquisite input data and the reporting of key performance indicators must be carefully included. Some of these technology alternatives can be installed. A program implementation manual is a useful tool to provide program personnel with necessary policy and procedure guidelines. . The special issues related to such DSM programs involving supplier owned and installed equipment include selecting the proper equipment or hardware.
a mix of implementation techniques will be used. and finally. Identifying Quality Assurance Consideration Because of the possible large number of dispersed devices. The stages may include forming an implementation project team. failures may be attributed either to malfunctions of the devices or to the communication links. The Implementation Process Developing. installing and operating an energy supply system that is all the steps associated with “implementing” a supply-side program takes years of planning and scheduling. Developing an Installation and Maintenance Schedule Many expenses are involved in the installation. This “time-phased” process tends to reduce the magnitude of the implementation problem. The implementation process takes place in several stages. Efficient scheduling of equipment ordering and installation is helpful in reducing unnecessary program delays. maintenance. and this requires the careful coordination of all parties. There are many actors involved in the implementation process. calculations concerning reliability and maintenance. because pilot programs can be used to resolve program problems before system-wide implementation takes place. Operating costs can be reduced by developing prudent scheduling policies for limited crew resources. The selected implementation marketing measures should be compatible with any technology alternative that is part of the demand-side program. and strict construction scheduling. and careful coordination is required. An equally rigorous approach is needed to implement the demand-side alternatives. Implementing demand-side programs involves many functional elements. rigorous analytic modeling. completing a pilot experiment and demonstration. implementers can improve customer and utility system performance by considering quality assurance in the implementation program. . As a first step. In most cases. and repair of the numerous devices that are included in a demand-side program.212 The Smart Grid: Enabling Energy Efficiency and Demand Response Establishing an Appropriate Implementation Program Some programs are better suited to promote the installation of certain demand-side technology alternatives. a high-level. expanding to systemwide implementation. In the example of electric direct load control program.
then the implementers may consider initiating the full-scale program. Monitoring and evaluation programs can also serve as a primary source of information on customer behavior and system impacts. marketing. and with the overall control and responsibility for the implementation process.Market Implementation 213 demand-side management project team should be created with representation from the various departments and organizations. Tracking and review of program costs. there is a need to monitor demand-side alternatives. including a written scope of responsibility. and provide management with the means of examining demand-side programs as they develop. Pilot experiments may be limited either to a sub-region or to a sample of consumers throughout an area. After the pilot experiment is completed. It is important for implementers to establish clear directives for the project team. If the pilot experiment proves cost-effective. staffing. and scheduled milestones can help determine whether the demand-side management program has been imple- . Pilot experiments can be a useful interim step toward making a decision to undertake a major program. When the limited information is available on prior demand-side program experiences. project team goals and time frame. MONITORING AND EVALUATION Just as there is need to monitor the performance of supply-side alternatives. a pilot experiment may precede the program. additional effort must be given to refining the training. In monitoring the performance of demand-side management programs. customer acceptance. and program administration requirements. two questions need to be addressed: • • Was the program implemented as planned? Did the program achieve its objectives? The first question may be fairly easy to answer once a routine monitoring system has been adopted. The ultimate goal of the monitoring program is to identify deviations from expected performance and to improve both existing and planned demand-side programs. foster advanced planning and organization within a demand-side program.
this measurement can be difficult because other factors unrelated to the demand-side program can have a significant impact on customer loads. implementers should be aware of basic program performance indicators. demand-side program objectives can be best characterized in terms of load shape changes. activities completed. The descriptive evaluation. Recordkeeping and reporting systems can be helpful in completing descriptive evaluations. and characteristics of program participants. can be useful in assessing the relative success of a demand-side management program. two common approaches can be taken: • Descriptive—Basic monitoring that includes documentation of program costs. and the number of customer complaints. The reference baseline reflects those load shape changes that are “naturally occurring”—that is. in terms of both administrative procedure and target population characteristics. the reference baseline might be the existing forecast with appropriate adjustment to reflect the short-term conditions in the . In some cases. To assess load shape impacts requires the careful definition of a reference baseline against which load shapes with a demand-side management alternative can be judged. • The two monitoring approaches tend to address different sets of concerns. acceptance rates. is not adequate for systematically assessing the load shape impacts of the demand-side program. or both. Experimental—Use of comparisons and control groups to determine relative program effects on participants or nonparticipants. In monitoring and evaluating demand-side programs.214 The Smart Grid: Enabling Energy Efficiency and Demand Response mented as planned. therefore. However. As noted previously. With a descriptive approach. the frequency of demand-side equipment installation. those changes unrelated to the demand-side program itself. however. The second question can be much more difficult to answer. services offered. the type of participants (single family households or other demographic groups). it is useful to incorporate both in program design. Information such as the cost per unit of service. an assessment of program success must begin with measuring the impact of the program on load shapes. Thus.
the reference might be a control group of customers not participating in the program. but there is no guarantee that all customers will react in a similar fashion. for example. External validity is the ability to generalize experimental results to the entire population. from retirement or from the second spouse joining the labor force. including not only appliance stock data but also such information as family size. that group must have characteristics similar to those of the participants. In other cases. of course. and age of head of household. In some . If the reference point is a group of nonparticipants. income. Threats to monitoring program validity usually fall into two categories: problems associated with randomization and problems associates with confounding influences. Confounding influences refer to non-program-related changes that may increase or decrease the impact of a demand-side program. work schedules. Similarly. Randomization refers to the degree to which the participating customer sample truly represents the total customer population involved in the demand-side program. the effect of an electric direct load control of a central storage water heater can be altered by changes in a customer’s living pattern resulting. requires a great deal of information on both groups to allow for proper matching. The energy consumption and hourly demand of program participants could also be measured before they joined the program to provide a “before” and “after” comparison. It can also refer to the degree of bias involved in assigning customers to the experimental and control groups. The “before” situation must be clearly characterized so that appropriate impact of the program can be measured. Adding an extra appliance (such as a window air conditioner) can more than offset any reductions in energy use resulting from an electric weatherization program. Monitoring Program Validity Monitoring programs strive to achieve two types of validity: internal and external.Market Implementation 215 service area. This. it is often necessary to adjust data for subsequent changes in the customer’s appliance or equipment stock and its usage. controlled water heating may reduce peak load for a sample of participants. Internal validity is the ability to accurately measure the effect of the demand-side management program on the participant group itself. If a “before” reference is used. For example.
additional data must be collected before the start of the program. If the “before” data are inadequate. The data collection system should be designed before the implementation of the demand-side program itself. The data must be valid (measure what it is supposed to measure) and reliable (the same results would occur if repeated. Typically. utility metering. The expertise gained in conducting these activities is helpful in considering the development of a monitoring program. There are a number of reasons for this: • Some information is needed on a “before” and “after”“ program initiation basis. The cost of data collection is likely to be the most expensive part of the evaluation study. inflation. energy bills. Some data collections take considerable time. awareness of the program. Data and Information Requirements Data and information requirements involve the entire process of collecting. telephone surveys are to complete field surveys. and field surveys. and plant openings and closings. validating. motivations for participating. The information-gathering mechanisms may already be in place at many utilities. managing. The list of potential sources of confounding influences is extensive.216 The Smart Grid: Enabling Energy Efficiency and Demand Response cases. Load research programs and customer surveys have long been used to collect data for forecasting an planning. and analyzing data in the monitoring and evaluation program. • • In addition. Sources of evaluation data include program records. Monitoring the effect of the demand-side alternative throughout the program allows for adjustments and modifications to the program. and satisfaction is very important in evaluating the overall success of a program. particularly if metering of consumer electric or gas end uses has to be performed. . the effect of these non-program-related changes can be greater than the effect of the demand-side program. within an acceptable margin of error). including weather. changes in personal income. Data collection costs can be reduced with proper advance planning and by having sufficient recordkeeping and reporting systems. information on participant characteristics.
CO. Residential End-Use Energy Planning System (REEPS). Published by the Electric Power Research Institute. October 1983. Faruqui. Office Productivity Tools for the Information Economy: Possible Effects on Electricity Consumption. 1985. Electricity Demand (Boulder. “Ten Propositions in Modeling Industrial Electricity Demand. A. evaluation design. P. and fund monitoring programs. evaluation program costs must be kept in balance with benefits.. July 1982. Number 8. Establishing clear lines of responsibility and accountability for program formulation and direction. evaluation design implementation. Organizing and reporting the results of the evaluation program to provide management with a clear understanding of these results. Westview Press).. Alliance to Save Energy. Recognizing that monitoring and evaluation programs can be dateintensive and time-consuming. Demand-side Planning Cost/Benefit Analysis.” in Adela Bolet (ed. Cambridge Systematics. Legal. Inc. and Economic Analyses. Some of the most important hurdles that must be overcome in the management of a monitoring program include: • Assuring sufficient advanced planning to develop and implement the monitoring and evaluation program in conjunction with the demand-side activity. “Cooling Commercial Buildings with Off-Peak Power.C. the COMMEND Planning System: National and Regional Data . and J. Wharton. Report No. Boston Pacific Company. EA-2512 (RP 1211-2). September 1986. EPRI RDS 94 (RP 1613).Market Implementation 217 Management Concerns Monitoring and evaluation programs require careful management attention.S. Developing a strong organizational commitment to adequately plan. August 1983. prepared for Electric Power Research Institute. coordinate. Utility Promotion of Investment in Energy Efficiency: Engineering. therefore. Volume 8.) Forecasting U. • • • • Monitoring and evaluation programs can be organized in four stages: pre-evaluation planning.” EPRI Journal. Inc. Published by the Electric Power Research Institute. and program feedback. November 1983. References Decision Focus. Gupta. Commend building types. Report No.
Synergic Resources Corporation. EBASCO Services. Opportunities in Thermal Storage R&D. Gayle Lloyd. Strategic Implications of Demand-side Planning. July 1983. McMenamin and I. Vol. and Ahmad Faruqui. Report No. Report No. Vol. Inc. Inc. Identifying Commercial Industrial Market Segments for Utility Demand-side Programs. Clark W. Inc. November 1983. EA-970 (RP 1108). Washington. Lauritis R.S. EPRI EA 2396 (RP 1485). 1982. EM-3159-SR. D. Eco-Energy Associates. Demand-side Management Vol. Published by the Electric Power Research Institute. March 1986.” Paper Presented at Energy Technology Conference. Published by the Electric Power Research Institute. Integrated Analysis of Load Shapes and Energy Storage. October 1983.. Energy Management Associates. 4: Commercial Markets and Programs. Consumer Selection of End-Use Devices and Systems. EPRI EURDS 94 (RP 1613). EPRI RDS 94 (RP 1613). The PG and E Energy Expo. Published by the Electric Power Research Institute. Gupta. Chirtensen Associates. Limaye. David C. Published by Electric Power Research Institute. 1: Overview of Key Issues. 3 Project 2381-4 Final Report. EPRI EA/EM-3597. forthcoming. Gellings.. March 1984. EPRI EA/EM-3597. RP 2547. EPRI EA/EM-3597.W.” in James L. Pp. Published by the Electric Power Research Institute. Inc. Report No. Survey of Innovative Rate Structures. EPRI EA/EM-3597. 4 Project 2381-4 Final Report. New Jersey. EPRI EM-4486. 1981 Survey of Utility Load Management Conservation and Solar End-Use Projects... forthcoming 1984. Gellings and D. Prentice-Hall. Report No. Demand-side Management Vol. EPRI SIA82-419-6. Demand-side Management Vol. Issues in Implementing a Load Management Program for Direct Load Control. March 1983. EPRI Reports prepared by Synergic Resources Corporation. Decision Focus. Hopkins.” ..218 The Smart Grid: Enabling Energy Efficiency and Demand Response and Analysis. Vol. Electric Utility Rate Design Study. Rohmund. Electric Power Research Institute Working Paper. “Load Management Implementation Issues. Inc. Energy Utilization Systems. C.” December. April 1966. November 1982.) Strategic Planning and Management for Electric Utilities. Electric Utility Conservation Programs: Assessment of Implementation Experience (RP 2050-11) and 1983 Survey of Utility End-Use Projects (EPRI Report No. Inc. Report No. 27-28 and 38-39. EPRI EA-2904 (RP 2050-8). Plummer (ed. Inc. Customer’s Attitudes and Customers’ Response to Load Management. 1 Project 2381-4 Final Report.. EPRI RP2381-5.. Jersey Central Power and Light Company and Todd Davis. Decision Focus. March 1979. Pradeep C. Decision Focus. EM-2649 (RP 1940-1). The Marketing Plan (New York: The Conference Board. Load Management Strategy Testing Model. Electric Power Research Institute. May 1982.. J. 1981). Published by the Electric Power Research Institute. Decision Focus. Inc. EPRI Project. Residential Response to Time-of-Use Rates.R. Vol. EPRI Project RP 1956. Published by Electric Power Research Institute. December 1983. Demand-side Planning Cost/Benefit Analysis. presentation made at the EPRI Seminar on “Planning and Assessment of Load Management.C. Cost/Benefits Analysis of Demand-side Planning Alternatives. “Market Planning for Electric Utilities. Electricity Use in the Commercial Sector: Insights from EPRI Research. 3: Technology Alternatives and Market Implementation Methods. 2 Project 2381-4 Final Report. Published by the Electric Power Research Institute. Demand-side Management Vol. 2: Evaluation of Alternatives. EM 3529).. Report No. Linda Finley.
57. Electric Power Research Institute. Pradeep Gupta. Utility Controlled Customer Side Thermal Energy Storage Tests: Cool Storage.A. . US DL 85-478. Kreith and D. 1986 Statistical Year Book. published by the Electric Power Research Institute. Todd Davis and Peter Turnbull (New York Pergamon Press. EPRI EM-4142. Paper presented at Utility Conservation Programs: Planning. 1985. Published by the Electric Power Research Institute. Bureau of Labor Statistics. 1984. “Understanding Commercial Fuel and Equipment Choice Decisions. A Guide for Utility Planners. Resource Planning Associates. 5-4. Non-residential Buildings Energy Consumption Survey: Characteristics of Commercial Buildings. U. 439-447. November 7. Department of Energy. ORNL-5795.W. College of Engineering. Inc. EA-4267. Energy Information Administration. Michael Porter. EPRI has also recently funded a project on “Identifying Consumer Research Techniques for Electric Utilities” (RP 1537). Electric Power Research Institute. State Energy Date Report. Electric Utility Sponsored Conservation Programs: An Assessment of Implementation Mechanisms (forthcoming). Gellings. September 13. C. Department of Energy. Southern California Edison Company.” from the Utility Resource Planning Conference sponsored by the University of California-Berkeley. Edison Electric Institute. Survey of Utility Commercial Sector Activities.Market Implementation 219 M. edited by F.” Meeting Energy Challenges: The Great PG&E Energy Expo. July 1985. Marketing Demand-side Programs to Improve Load Factor. Synergic Resources Corporation. EPRI P-2799-SR. “Load Forecasting. U. 1985). Methods for Analyzing the Market Penetration of End-Use Technologies: A Guide for Utility Planners. New York. January 1983. EPRI EA-2008 (RP 1478-1).. Parmenter. 1983. and K. CRC Press. pp. Mathematical Sciences Northwest.Y. Robert M. 1985. 1983 Survey of Utility End-Use Projects. Inc. vol. RP 2050-11. Inc. California. 1980).” in Handbook of Energy Efficiency and Renewable Energy. Goswami. February 1983.S. Department of Labor. Energy Consumption Survey Data for COMMEND buildings. EPRI EA-2702 (RP 2045-2). Kuliasha. p. Published by Oak Ridge National Laboratory. September 1981.S. Conference Proceedings. Report No. Residential Load Forecasting: Integrating End Use and Econometric Methods. 1981 Conservation and Load Management: Volume II Measurement (1981 Page 2-VIII-I). October 1982. Coughlin.. New Orleans. Electric Power Research Institute. Analysis. EPRI EA-2702 (RP 2045-2).S. February 28. and Implementation. October 1982. p. 1983—1987 Research and Development Program Plan published by the Electric Power Research Institute. 1983.E. Stephen Braithwait. April. October 1985. Report EM-3529-1984 (RP 1940-8). “Demand-side Management. edited by Craig Smith. Methods for Analyzing the Market Penetration of End-Use Technologies. Reference Manual of Data Sources for Load Forecasting. NY: 2007. 1979 Nonresidential Buildings. 2. 1985. Berkeley. Synergic Resources Corporation. Competitive Strategy (New York Free Press. U. Published by Electric Power Research Institute.
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fluorescent *This chapter benefits from several related efforts. but increasing their market penetration has the potential to yield significant improvements in worldwide energy efficiency. Many of these technologies are already in use. 221 . Task 2 of the Galvin Electricity Initiative (www..g. Such accelerated advancements require focused research initiatives. accelerated advancements are needed. but in order to achieve the maximum potential for energy efficiency. In addition. EXISTING TECHNOLOGIES Many technologies capable of improving energy efficiency exist today. advancements in these technologies as well as commercialization of emerging technologies will act to further energy efficiency improvements. There is a second category of electric end-use technologies that is covered in this chapter. Some have been established for several decades (e.galvinpower. It then identifies some emerging technologies as well as some research needs. LLC on the Impacts of Electrotechnologies—all managed and directed by the author. Maximization of the energy efficiency potential also means that some of the basic science will need to evolve. It involves those technologies which have the potential to displace end-use applications of fossil fuel while reducing overall energy use and CO2 emissions.Chapter 11 Efficient Electric End-use Technology Alternatives* There are numerous electric energy efficient technologies commercially available. including work from Phase One. Some advancements will occur naturally. This second group is typically referred to as electrotechnologies.org) and the second includes work done by EPRI staff and Global Energy Partners. This section lists representative technologies that are commercially available for buildings and industry.
but could still benefit from increased penetration (e. waste treatment. Figure 11-1 lists examples of technologies for buildings and industry. air and water treatment. membrane separation.222 The Smart Grid: Enabling Energy Efficiency and Demand Response lamps). The industry technologies are divided into the end-use areas of motors.. In the U. still others have been available for a while. Existing end-use technologies which may be deployed in offices and similar commercial applications associated with power plants are also discussed in Chapter 2. artificial illumination is estimated to demand 20 to 25% of all electric energy in developed countries. and 6 TO 7% of total electricity consumption in manufacturing facilities. The advent of electric lighting drastically transformed modern society’s use of artificial illumination. food and agriculture. Some of the technologies listed (particularly for industry) are electrotechnology alternatives to thermal equipment.S. lighting systems currently account for about one-tenth of total electricity consumption in residential buildings. others are new to the market-place (e. and should not be considered a complete listing. and general. depending on the generation mix of the utility supply and distribution to end-users. enhances beauty. Lighting Artificial illumination is essential to society.. In developing nations. white LED task lighting). The buildings technologies are broken down into categories of building shell. Because of its significance to society—both in terms . The table is meant to serve as a representative list of technology alternatives. One of the primary advantages of electrotechnologies is that they avoid on-site emissions of pollutants and. electrolysis. however. appliances. artificial illumination is often the first use that newly electrified communities embrace. boilers. in some cases they may use more energy. The majority of the technologies listed consume less energy than conventional alternatives.g. heating. water heating. lighting controls). Artificial lighting is now ubiquitous to nearly every aspect of our life. Worldwide. nearly onequarter of total electricity consumption in commercial buildings. It enables productivity. and general.. cooling and heating. process heating. lighting. In many cases they are more energy efficient than conventional thermal alternatives. provides safety. cooling. and allows for visual entertainment. they can result in overall emissions reductions. facilitates information transfer.g.
Examples of Technology Alternatives for Buildings and Industry .Efficient Electric End-use Technology Alternatives 223 Figure 11-1.
224 The Smart Grid: Enabling Energy Efficiency and Demand Response of functionality and energy use—maximizing lighting’s contribution to a perfect electric energy service system is an obvious goal of future innovation. and provide air mixing and ventilating. pumps. the U. and various controls used to operate space-conditioning equipment. Environmental Protection Agency (EPA) states that it is one of the five most critical environmental concerns in the U. cool. commercial and industrial sectors. Table 11-1. humidifiers. dehumidifiers. resistance heaters.S. humidify. dehumidify. Indoor Air Quality Indoor air quality is a subject of increasing concern to consumers. When properly designed. Innovative Lighting Technologies Space Conditioning Space conditioning is an important consumer function. To this end. In fact. It also accounts for a relatively large share of electricity use across the manufacturing industries.S. air conditioners. The primary purposes of space conditioning are to heat. chillers. Table 11-1 shows innovative lighting technologies that may potentially contribute to reduced electricity consumption. Space conditioning is the largest end-user of electricity in both residential and commercial buildings. space-conditioning systems afford the consumer healthy living and working environments that enable productivity and a sense of well-being. Ac- . innovations in technologies related to space conditioning may have a substantial effect on how electricity is used in the future. electricity drives devices such as fans. Table 11-2 shows innovative space-conditioning technologies that may potentially contribute to reduced electricity consumption. Because of its significance and large impact on electricity use across the residential. electric boilers. heat pumps. cooling towers.
Efficient Electric End-use Technology Alternatives
Table 11-2. Innovative Space Conditioning Technologies
cording to EPA statistics, Americans spend an average of 90% of their time indoors, either at home, school or work. Thus, it is essential for our health and well-being that we take measures to ensure acceptable indoor air quality. The health effects of poor indoor air quality can be particularly severe for children, elderly, and immuno-suppressed or immuno-compromised occupants. Poor indoor air quality is estimated to cause hundreds of thousands of respiratory health problems and thousands of cancer deaths each year (EPA, 2001). Indoor air contaminants such as allergens, microorganisms, and chemicals are also triggers for asthma. In addition to causing illness, poor indoor air quality may inhibit a person’s ability to perform, and leads to higher rates of absenteeism. Furthermore, turmoil with the Middle East has promulgated the need for heightened homeland security measures, which focus on protecting building occupants from chemical and biological weapons and creating more resistant indoor environments. Table 11-3 shows innovative indoor air purification technologies that may reduce electricity consumption.
Table 11-3. Innovative Indoor Air Purification Technologies
The Smart Grid: Enabling Energy Efficiency and Demand Response
Domestic Water Heating Domestic water heating is essential for the comfort and wellbeing of consumers. Hot water is used for a variety of daily functions, including bathing, laundry and dishwashing. Water heating is also a significant end user of electricity, particularly for the residential sector. Indeed, water heating accounted for 9.1% of residential electricity use in 2001. It makes up a smaller share in the commercial sector, consuming 1.2% of commercial electricity use in 1999. Electricity is used to run electric resistance water heaters, heat pump water heaters, pumps and emerging devices such as microwave water heaters. Because of the importance of water heating to society—in terms of both functionality and electricity use—maximizing the contributions by water heating technologies to a perfect electric energy service system should be a focus of future innovation. Table 11-4 shows innovative domestic water heating technologies which may potential contribute to reduced electricity consumption.
Table 11-4. Innovative Domestic Water Heating Technologies
Hyper-efficient Appliances While the adoption of the best available energy-efficient technologies by all consumers in 100% of applications is far from complete, the utilities, states and other organizations interested in promoting increased efficiency are beginning to question the availability of the “next generation” of energy-efficient technologies. After several years of unsuccessfully trying to encourage the electricity sector to fill in the gaps of R&D in advanced utilization appliances and devices, EPRI has turned instead to the goal of transferring proven technologies from overseas. As a result of several factors, manufacturers of electrical apparatus in Japan, Korea and Europe have outpaced U.S. firms in the development of high-efficiency electric end-use technologies. If fully deployed, these technologies could reduce the demand for electric energy by over 10%. In addition, collectively these technologies have the potential to reduced electric energy consumption in residential
Efficient Electric End-use Technology Alternatives
and commercial applications by up to 40% for each application. They represent the single greatest opportunity to meet consumer demand for electricity. The technologies are currently being demonstrated with several utilities in different climate regions to assess their performance when deployed in diverse environments. This will ensure a thorough evaluation. The following technologies are considered among those ready for demonstration in the U.S.: • • • • • • Variable Refrigerant Flow Air Conditioning (with and without ice storage) Heat Pump Water Heating Ductless Residential Heat Pumps and Air Conditioners Hyper-Efficient Residential Appliances Data Center Energy Efficiency
Light-emitting Diode (LED) Street and Area Lighting
Ductless Residential Heat Pumps and Air Conditioners Approximately 28% of residential electric energy use can be attributed to space conditioning. Use of variable frequency drive air conditioning systems can offer a substantial improvement when compared to conventional systems. In addition, in many climate zones, the industry has long recognized that the application of electric-driven heat pump technology would offer far greater energy effectiveness than fossil fuel applications. However, except in warmer climates, the cost and performance of today’s technology in insufficient to realize that promise. These ductless systems have the potential to substantially change the cost and performance profile of heat pumps in the U.S. Variable Refrigerant Flow Air Conditionings Ducted air conditioning systems with fixed-speed motors have been the most popular system for climate control in multi-zone commercial building applications in North America. These systems require significant electricity to operate and offer no opportunity to manage peak demand. Multi-split heat pumps have evolved from a technology suitable for residential and light commercial buildings to variable refrigerant
The Smart Grid: Enabling Energy Efficiency and Demand Response
flow (VRF) systems that can provide efficient space conditioning for large commercial buildings. VRF systems are enhanced versions of ductless multi-split systems, permitting more indoor units to be connected to each outdoor unit and providing additional features such as simultaneous heating and cooling and heat recovery. VRF systems are very popular in Asia and Europe and, with an increasing support available from major U.S. and Asian manufacturers, are worth considering for multi-zone commercial building applications in the U.S. VRF technology uses smart integrated controls, variable-speed drives, refrigerant piping and heat recovery to provide products with attributes that include high energy efficiency, flexible operation, ease of installation, low noise, zone control and comfort using all-electricity technology. Ductless space conditioning products, the forerunner of multisplit and VRF systems, were first introduced to Japan and elsewhere in the 1950s as split systems with single indoor units and outdoor units. These ductless products were designed as quieter, more efficient alternatives to window units (Smith, 2007). Heat Pump Water Heating Heat pump water heaters (HPWHs) based on current Japanese technology are three times more efficient than electric resistance water heaters and have the potential to deliver nearly five times the amount of hot water, even compared to a resistance water heater. HPWHs are significantly more energy efficient than electric resistance water heaters, and can result in lower annual water heating bills for the consumer, as well as reductions in greenhouse gas emissions. But the high first costs of heat pump water heaters and past application and servicing problems have limited their use in the U.S. Water heating constitutes a substantial portion of residential energy consumption. In 1999, 120,682 GWh of electricity and 1,456 trillion Btu of natural gas were consumed to heat water in residences, amounting to 10% of residential electricity consumption and 30% of residential natural gas consumption (EPRI, 2001). While both natural gas and electricity are used to heat water, the favorable economics of natural gas water heaters have historically made them more popular than electric water heaters. Heat pump water heaters, which use electricity to power a vaporcompression cycle to draw heat from the surrounding environment,
Efficient Electric End-use Technology Alternatives
can heat water more efficiently for the end user than conventional water heaters (both natural gas and resistant element electric). Such devices offer consumers a more cost-effective and energy-efficient method of electrically heating water. The potential savings in terms of carbon emissions at the power plant are also significant. Replacing 1.5 million electric resistance heaters with heap pump water heaters would reduce carbon emissions by an amount roughly equivalent to the annual carbon emissions produced by a 250 MW coal power plant. Heat pump water heaters have been commercially available since the early 1980s and have made some inroads in some places in the world, particularly in Europe and Japan. Hyper-efficient Residential Appliances Driven in part by high electricity prices and government encouragement, Japanese, Korean, Vietnamese and European markets have witnessed the introduction and widespread adoption of “hyper-efficient” residential appliances including electric heat pump clothes washers and dryers, inverter-driven clothes washers, multi-stage inverter-driven refrigerators, and advanced-induction ranges and cook tops. Depending on the application, these appliances can use 50% less electricity than conventional U.S. appliances. However, there are issues with regard to their acceptance with U.S. consumers and their actual performance. Data Center Energy Efficiency Data centers consume 30 terawatt hours of electricity per year. The technologies that are employed in those buildings today only allow 100 watts of every 245 watts of electricity delivered to actually be used to provide computational ability. The steps in between delivery to the building and actual use include the following conversions: • • • • Uninterruptable Power Supplies Power Distribution Power Supplies 88—92% Efficient 68—75% Efficient 78—85% Efficient 98—99% Efficient
DC to DC Conversion
In addition, all the lost energy has to be cooled. That is typically
The Smart Grid: Enabling Energy Efficiency and Demand Response
done with air conditioning requiring 1,000 watts for each ton of cooling, typically at an efficiency of 76%. Light-emitting Diode (LED) Street and Area Lighting Street lighting is an important lifestyle enhancement feature in communities all over the world. There is a move across the U.S. to replace existing street and area lights—normally mercury vapor, highpressure sodium (HPS) or metal halide (MH) lamps—with new technology that costs less to operate, and LEDs are at the forefront of this trend. Since LED street and area lighting (LEDSAL) technology is still relatively new to the market, utilities, municipalities, energy service providers and light designers have expressed a keen interest in what the tradeoffs are between conventional lighting and LEDSAL. Cost is probably first among them, with the disadvantage of higher initial cost, but the advantage of lower operating costs. Several important tradeoffs to consider when adopting LEDSAL are presented in this chapter, organized according to their advantages and disadvantages. The advantages include energy efficiency, lower operating costs, durability, flexibility and improved illumination that can lead to increased safety. On the disadvantages side are higher first costs, lower immunity to electrical disturbances, lower LED efficacy, varying fixture designs, three-wire installation, and unsuitability for retrofits into conventional fixtures. LEDSALs offer a number of advantages related to power and energy use, light quality, safety and operating costs. INDUSTRIAL Industrial use of electricity is dominated by the use of electric motors, lighting and process heating. Lighting applications have been discussed earlier. This section focuses on motors and drives as well as process heating. This is followed by three additional key opportunities for energy efficiency in the industrial sector—cogeneration, thermal energy storage and the application of industrial energy management programs. Motors and Drives Electric motors and drives use about 55% of all electricity in the
pumps. Operation and maintenance measures are typically inexpensive and easy to implement. reluctance motors and induction motors. belts. There are several types of motors used in industrial applications. couplers. A drive system includes the following components: electrical supply. blowers. trimming. Motors • Better lubrication: It is important to use high-quality lubricants that are appropriate for the particular application. including DC motors. stamping. and assorted equipment for crushing. electrically driven equipment accounts for about 67% of industrial electricity use in the U. It is best to focus on the entire drive system to realize maximum energy savings.S. There are losses in each component that need to be addressed for maximum efficiency. drive controls. Induction motors are by far the most common motor used in industry and account for over 90% of all the motors of 5 horsepower and greater. blowers. In addition. Indirect energy savings can also be realized through efficient motor and drive operation. less waste heat is generated by an efficient system. Applications of electric drives include compressors. This section focuses on efficiency opportunities in (a) the operation and maintenance of electric drive systems. (b) equipment retrofit and replacement. and provide an opportunity for almost immediate energy savings. The main energy efficiency opportunities for motors. and pumps. fans. In general. chains. and therefore. the efficient use of motors and drives presents a considerable opportunity for energy savings in the industrial sector and beyond. refrigeration systems. efficiency improvements can be made in four main categories: the prime mover (motor).S. and electrical supply systems are described below. cutting and milling operations. and (c) controls and alterations to fans. gear drives and bearings. a smaller cooling load would result for an environment that is air conditioned. permanent magnet DC motors. For example. Too much or too little lubrication can reduce system efficiency. grinding. motor. synchronous motors. The efficiency of motors and drives can be improved to some extent by better operation and maintenance practices. electric drive. and electrical supply.Efficient Electric End-use Technology Alternatives 231 U. As a result of their prevalence. mixing. • Improved cooling: Adequate cooling of motors can reduce . conveyors. control packages. drive trains. drive train.
• Minimization of friction: Reduce losses due to friction by checking operation of bearings. Is it more efficient to run smaller motors continuously. Efficiency decreases as the percentage of loading is decreased. Direct driven loads: Use direct-driven loads in the place of gear. Quality rewinding: Use high-quality winding techniques and materials (such as copper) when rewinding motors. This is facilitated by choosing leak-proof motors Minimized low. Operation: Analyze the merits of continuous vs. or larger motors in batch operation? • • • • Drive Train • Belt operation: Properly align belt drives. Motor matching: Size the motor correctly to fit the application. • Spillage prevention: Prevent the spillage of water into motor windings. belt drives and clutches. • • • • . Cleaning heat transfer surfaces and vents will help improve cooling. Adjust belt tension correctly. Lubrication: Lubricate the chain in chain drives correctly. Chains: Convert roller chains to silent chains.or no-load operation of motors: Eliminate motors that are operating infrequently or at low loads. Consider replacing or rewinding motors with aluminum windings. Synchronous belts: Convert V-belts to synchronous belts.232 The Smart Grid: Enabling Energy Efficiency and Demand Response the need for motor rewinds and improve efficiency. gears. Use appropriate types and quantities of lubricants. Match its torque characteristics to the load. batch operation.
This reduces energy consumption considerably by matching the motor speed to the process requirements. Other controls: Consider power factor controllers in low-dutyfactor applications. Turn off motors when they are not in use. • 233 Quality bearings: Use high-quality bearings for minimized friction. Electrical Supply • Operation at rated voltage: Motors are most efficient if they are operated at their rated voltage. and feedback control systems. The waste heat can supply heat for another part of the process. switching gear. Equipment Retrofit and Replacement Equipment retrofit and replacement measures require more money and time to implement than do operation and maintenance measures. Check substations. Replacement of throttling valve with variable-speed drive: Con- • • • • . and schedule large motors to operate during off-peak hours. Efficient power systems: Losses can occur in the power systems that supply electricity to the motors.Efficient Electric End-use Technology Alternatives belt or chain drives for maximum efficiency. Variable speed drives (adjustable speed drives): Install variable speed drives to control the shaft speed of the motor. transformers. Some common retrofit and replacement opportunities for motors and drives are described below. however. • • Phase balance: Balance three phase power supplies. they can also result in more significant energy savings. feeders and panels for efficient operation. • Heat recovery: Modify equipment to recover heat. De-energize excess transformer capacity. reducing the demand on heating equipment. Controls for scheduling: Install controls to schedule equipment. distribution systems.
electric-based systems. • Replacement of pneumatic drives: Consider replacing pneumatic drives with electric motors. cleanliness at the point of use. if possible. small size. Throttling valves are associated with significant energy losses. there is still a large potential for energy savings. The share of electric process heat systems is likely to increase in the future because of several advantages associated with electric systems. electrically powered systems only account for a few percent of the total. it is significant enough that energy efficiency improvements in process heat applications have the potential for a substantial impact on overall electrical efficiency. including ease of control. The four main ways for process heat to be generated are with combustible fuel-based systems. Pneumatic drives use electricity to generate compressed air which then is converted to mechanical energy.S. and applicability for a large range of capacities. Motor manufacturers have focused on improving motor efficiency since the mid-1970s when the cost of electricity started to rise. In addition. thermal recovery systems. but in some applications.234 The Smart Grid: Enabling Energy Efficiency and Demand Response trol shaft speed with a variable-speed drive instead of a throttling valve. Electric motors are much more efficient. electric systems will likely become more prevalent as a result of the increasing costs . and when motors need replacement. which are hard to eliminate or avoid. the utilization of high-efficiency motors in industry is small compared to what is possible. safety. When all types of process heat are considered. Replacement of steam jets: Replace steam jets on vacuum systems with electric motor-driven vacuum pumps. The main inefficiency of pneumatic drives arises from air leaks. pneumatic drives are preferred because of electrical hazards or because of the need for lightweight and highpower drives. Although this percentage is small compared to electric drive systems. High-efficiency motors: Install high-efficiency motors in all new designs and system retrofits. or with solar collection systems. • • Process Heating Process heat accounts for 10% of industrial end-use of electricity in the U. Despite motor innovations and availability.
Efficient Electric End-use Technology Alternatives 235 of combustible fuels. and the thermal energy that results from the combustion process is used for process heat. As the public utility industry grew in size. electric salt bath furnaces. process heat is used for melting. fusing. There are a variety of electric heating systems currently available. it increased to about 5. annealing. Generally.1%. . The most common electric process heat technologies include resistance heaters. (2) bottoming cycles. Specific applications include distilling. and the costs of electricity generation decreased. space heat or additional electricity production. Cogeneration In the early 1900s. but the steam that is generated from the exhaust gas is directed into a steam turbine to produce additional electricity. and then the lower temperature steam is recovered and used to generate electricity. This was the beginning of cogeneration. There are three main classes of cogeneration systems: (1) topping cycles. and direct arc electric furnaces. heating and drying operations. high-temperature thermal energy (typically steam) is produced for process applications. and (3) combined cycles. In bottoming cycles. cogeneration began to receive more notice and has experienced a slow growth since the mid-1980s when industrial cogeneration capacity was about 4%. as a result of the oil embargo in the 1970s. dielectric systems (RF and microwave). cooking. and there are many emerging technologies. Between 1954 and 1976. Topping cycles are more commonly used than bottoming cycles. either simultaneously or sequentially. However. In topping cycles. induction heaters. electricity is produced first. industrial electrical power production decreased from about 25 to 9% and continued to decline. cogeneration use at the industry level started to decline. Cogeneration systems produce mechanical energy and thermal energy. most industries generated their own power and used the waste heat for supplemental thermal energy. Electricity is then produced when the mechanical energy is applied to a generator. infrared systems. Cogeneration should continue to grow in the face of increased fuel prices and the development of new cost-effective technologies. Combined cycles are based on topping cycles. In the early 1990s. The following section of this chapter summarizes some of the energy efficiency opportunities for process heat applications. softening and moisture removal.
e. TES is the storage of thermal energy in a medium (i. Cogeneration is applicable (and currently used) for steel mills of the open-hearth type. Food processing: The demand for cogeneration in the food industry is on the rise. newer mills utilizing electric-arc technology do not have a significant thermal demand. TES provides peak . The large thermal demand makes cogeneration a desirable option.236 The Smart Grid: Enabling Energy Efficiency and Demand Response Cogeneration systems are currently in use in a variety of industries. Steel industry: Open-hearth steel-making processes produce an off-gas that is capable of providing fuel to produce steam. and therefore. TES is used to manage energy in several ways. Petroleum refining industry: The petroleum refining industry has a significant thermal demand and is very well suited for cogeneration. however. The steam is then used to drive blast furnace air compressors and for other applications. Large quantities of burnable wastes are used to fuel cogeneration systems for electricity generation. The main limitation is the cyclic nature of its thermal demand. oil or solids) for use at a future time. steam. It uses about the same quantity of steam annually as the pulp and paper industry. Historically. • • • • Thermal Energy Storage Thermal energy storage (TES) can also be considered an industrial energy source. Chemical industry: The chemical industry is another significant user of cogeneration. water. and the number of candidate industries is increasing. For example. Any industry that has a demand for thermal energy and electrical energy is a candidate for cogeneration. the chemical industry has had the third largest installed cogeneration capacity in the industrial sector.. Some of the main applications of cogeneration in the industrial sector include: • Pulp and paper industry: The pulp and paper industry has been the primary industrial user of cogeneration. cogeneration is not as applicable.
Efficient Electric End-use Technology Alternatives
load coverage for variable electricity or heat demands, it allows for the equalization of heat supplied from batch processes, and it enables the storage of energy produced during off-peak periods for use during peak periods. TES is also used to decouple the generation of electricity and heat in cogeneration systems. Better energy management through the use of TES can help industries reduce their dependency on utilities for energy supply. In addition, TES systems can provide a backup reserve of energy in the event of a power outage. Industrial Energy Management Programs The establishment of an energy management program is a crucial part of the process of setting and achieving industrial energy-efficiency goals. First and foremost, the establishment of an energy management program requires a commitment from management to initiate and support such a program. Once management is committed, an energy management program should be custom designed for each specific application, since efficiency goals vary with the type and size of the industry. However, there are several main guidelines that are applicable to any energy management program. In general, the procedure for setting up an energy management program requires the following six main steps: • • • • • • Appoint energy managers and steering committee Gather and review historical energy use data Conduct energy audits Identify energy-efficiency opportunities Implement cost-effective changes Monitor the results
This general procedure may be applied to any type of facility, including educational institutions, commercial buildings, and industrial plants. Manufacturing Processes The industrial revolution brought about radical changes in how items were produced. The automation of manufacturing processes has improved the modern world’s standard of living and continues to do so. In recent times, these productivity gains have come from
The Smart Grid: Enabling Energy Efficiency and Demand Response
the introduction of the computer into manufacturing, automating repetitive tasks and allowing for improved quality control and process management. Manufacturing processes today are heavily automated and dependent on robots and computers to perform functions. This degree of automation, in turn, requires reliable and high-quality power. Manufacturing is also very energy intensive and can have negative environmental impacts. Technological innovations that can improve upon existing manufacturing processes, making them more productive, cost-effective, energy-efficient, and environmentally responsible are depicted in Table 11-5.
Table 11-5. Innovative Technologies for Manufacturing and Control of Air Emissions
ELECTROTECHNOLOGIES Electrotechnologies, while often existing technologies, are most often categories of end-use technology not considered as energyefficient. Interestingly, there are many end uses of fossil fuels that are inefficient from a total energy balance and environmental perspective. This is due to the physics of energy conversion wherein many end-use applications of electricity are far superior in conversion of electricity to actual desired heat, motive power, comfort or other derived energy conversion need that fossil fuels are. These electrotechnologies save so much energy at the point of end use so as to more than offset losses in electricity production and delivery. Also, as a result, they have lower CO2 emissions. Residential Sector There are eight electrotechnologies typically considered as having the potential for consideration as superior when compared to fossilfuel end-use applications in the residential sector. Table 11-6 summarizes these eight electrotechnologies.
Efficient Electric End-use Technology Alternatives
Table 11-6. Residential Electrotechnologies
Commercial Sector Twenty electrotechnologies have the potential for consideration as electrotechnologies in the commercial sector. Table 11-7 lists the twenty electrotechnologies in the commercial sector. Industrial Sector Table 11-8 summarizes the industrial electrotechnologies typically considered as having the potential to be superior when compared to
Table 11-7. Commercial Electrotechnologies
Table 11-8. Industrial Electrotechnologies
The Smart Grid: Enabling Energy Efficiency and Demand Response
fossil-fuel applications. A few are described in more detail in the section which follows. Induction Process Heating Induction heating systems use electromagnetic energy to induce electric currents to flow in appropriately conductive materials. The materials are then heated by the dissipation of power in the interior of the materials. Induction heating is similar to microwave heating except that induction heating utilizes lower frequency, longer wavelength energy. The approximate frequency range is 500 to 800 kHz. Dielectric Process Heat Dielectric heating is accomplished with the application of electromagnetic fields. The material is placed between two electrodes that are connected to a high-frequency generator. The electromagnetic fields excite the molecular makeup of material, thereby generating heat within the material. Dielectric systems can be divided into two types: RF (radio frequency) and microwave. RF systems operate in the 1 to 100 MHz range, and microwave systems operate in the 100 to 10 000 MHz range. RF systems are less expensive and are capable of larger penetration depths because of their lower frequencies and longer wavelengths than microwave systems, but they are not as well suited for materials or products with irregular shapes. Both types of dielectric processes are good for applications in which the surface to volume ratio is small. In these cases, heating processes that rely on conductive, radiative and convective heat transfer are less efficient. Infrared Process Heat Infrared heating is used in many drying and surface processes. It is based on electromagnetic radiation at small wavelengths of one to six microns and high frequencies (~108 MHz). Because of their small wavelengths of energy, infrared heating systems typically are not capable of penetrating more than several millimeters into materials and are, therefore, best suited for surface applications. Typical applications include drying paper and textiles, hardening surface coatings, and accelerating chemical reactions. Electric Arc Furnaces Electric arc furnaces use a large percentage of the energy that is consumed in the primary metals industry. They are used primar-
Efficient Electric End-use Technology Alternatives
ily for melting and processing recycled scrap steel. The refinement of scrap steel requires only about 40% of the energy required to produce steel from iron ore in a typical oxygen furnace. Since its inception, electric arc technology has improved substantially, and improvements are continuing. The percentage of steel produced in arc furnaces increased from 15% in 1970 to 38% in 1987, and the percentage is still rising. In addition, the electricity use per unit of product has decreased significantly. Energy improvements include the use of better controls, preheating of the material with fuel combustion or heat recovery, waste minimization by particle recovery, and ladle refining. Efficiency Advantages of Electric Process Heat Systems • Quick start-up: Electromagnetic systems are capable of quick start-up. Fuel-fired furnaces require long warm-up periods. As a result equipment is often left on continuously. Electric systems can be turned off when not in use. • Faster turn-around: Electric systems accomplish the required heating at a faster rate than furnaces. This can result in increased productivity and smaller heating times. Less material loss: Faster electric heating rates result in less material scaling. The amount of scaling is related to the time and quantity of exposure to oxygen at high temperatures. Energy is indirectly saved in the form of less material loss. Direct heating process: Direct heating systems are more efficient than indirect systems because energy losses from the heat containment system to the work piece are eliminated. Implementation of direct electric heating with infrared or dielectric technology can reduce energy use for industrial process heating by up to 80%, with typically a payback period of one to three years. Heat generation inside material: In induction and dielectric heating systems, heat is generated throughout the material, regardless of the material’s thermal conductivity. This is in contrast to radiative and convective heating systems, in which the effectiveness and efficiency depends on the materi-
The Smart Grid: Enabling Energy Efficiency and Demand Response al’s thermal conductivity. Since the materials are heated from within, less energy is lost and the heat is distributed more uniformly. This also results in increased product quality.
More process control: By varying the frequency of the energy, the heating parameters can be optimized for the specific application. As a result, energy loss is reduced. In addition, electric processes can direct the energy to the desired location more precisely. Energy use is reduced by the avoidance of heating unnecessary material or equipment.
MERITS OF ELECTROTECHNOLOGIES BEYOND ENERGY EFFICIENCY There are several benefits to the increased use of electrotechnologies in the residential sector aside from the energy and CO2 savings that they offer. A few of the specific merits of the electrotechnologies selected for analysis relative to their fossil-fueled counterparts include the following: • Urban Emissions Reduction: Emissions from direct combustion of fossil fuels are moved from homes to central generation sites, which tend to be located farther from city centers. Heat Pumps Leverage Ambient Heat: Therefore, in many heating applications, the primary energy source is the sun, which is a renewable and local energy source. Dehumidification: Heat pump water heaters cool and dehumidify the surrounding air when operating. Manufacturing Development: Wider adoption of heat pump technologies in the U.S. will present the opportunity for manufacturing development in the U.S. and, consequently, job creation in the green manufacturing sector.
One unique characteristic of electricity is that it is the only fuel source that can decrease its CO2 intensity. On one hand, this is due to
moisture content. there is increased research and development relating to technologies to reduce the amount of CO2 entering the atmosphere at fossil-fueled generation sites. direct combustion of fossil fuels will always produce the same amount of CO2. electricity is an orderly energy form. thereby eliminating the need to heat and cool the entire piece. in contrast to thermal energy. In contrast.. Form value affords flexibility. Electric Drives: Lower maintenance and operating cost. with only small variations based on fuel composition. As such. In the industrial sector.Efficient Electric End-use Technology Alternatives 243 the ability to change the fuel mix of generation. improved product quality. This orderliness means that electrical processes are controllable to a much more precise degree than thermal processes. For instance. i. electrotechnologies have some unique additional advantages over fossil-fueled technologies in industrial processes.e. i. lowered effluent temperature. energy input can instantly adjust to varying process conditions such as material temperature. which in turn allows technical innovation and enormous potential for economic efficiency and growth. carbon capture and storage. heating of parts precisely at points of maximum wear. electricity can deliver packages of concentrated.. lasers and electron beams can produce energy densities at the work surface that are a million times more intense than an oxyacetylene torch.e. improved process control. or chemical composition. since electricity has no inertia. . On the other hand. It offers society greater form value than other forms of energy since it is such a high-quality energy form. precisely controlled energy and information efficiently to virtually any point. quicker response to load changes. Heat Pumps: Reduced waste heat. which is random. A few of the specific merits of the electrotechnologies selected for analysis relative to their fossil-fueled counterparts include the following: • • • Electric Boilers: Smaller footprint. For one. improved process control. In addition. Their focal points can be rapidly scanned with computer-controlled mirrors or magnetic fields to deposit energy exactly where needed. This focusing can be a tremendous advantage in. increased penetration of nuclear and renewable generation sources. for example. reduced cooling water use.
EPA. and Energy Use. 2001. and Energy Use and Volume 2: 1999 Residential Buildings. References Healthy Buildings. CA: 2008. Phase I Reports: Potential for End Use Technologies to Improve Functionality and Meet Consumer Expectations. Appliances. Clark W. www. improved process control. .galvinpower. CONCLUSION One of the most important actions which can be undertaken to meet the energy needs of consumers is to make certain that end uses are as efficient as possible. EPRI. 2007.org. Energy Market Profiles—Volume 1: 1999 Commercial Buildings. Palo Alto. Discussion Paper. EPA-402-K-01-003. improved product quality. CA. Lee Smith.244 • The Smart Grid: Enabling Energy Efficiency and Demand Response Electrotechnologies for Process Heating: Reduced operating and maintenance costs. Washington. Palo Alto. Saving Energy with Electricity. “History Lesson: Ductless Has Come a Long Way. Healthy People: A Vision for the 21st Century. 2006. DC: October 2001. Gellings.” ACHR News. EPRI. Equipment. April 30.
Thus. participants in the electric sector have learned the importance of a flexible and diverse management strategy that will help them succeed in an increasingly competitive and uncertain market. In summary. This focuses on the broad issues of demand-side planning ranging from motives for considering energy efficiency. as well as system operators. environmental concerns. and rural electric utilities. Table 12-1 lists the definitions used in discussing demand-side planning.Chapter 12 Demand-side Planning INTRODUCTION From the energy issues first raised in the 1970s. and to analyses of implementation issues. the key issues that will be developed here are: • Demand-side planning can elucidate a broad range of alternatives for electricity demand. and augment the range of choices available to utility management in meeting the environmental challenges of the future. A key challenge through these decades continues to be balancing customer demand for electricity with cost. it warrants examination by virtually every participant in the electric sector. This chapter is intended to provide an overview of the key issues in that regard. The arrangement between consumers and providers can be dynamic. demand response and electrification can help mitigate the need for future generating capacity. These options are equally applicable and desirable for investor-owned. to techniques for analyzing the cost-effectiveness of alternatives. transmission or generation. Recognizing and planning for the integration of customer programs like energy efficiency. whether distribution. assure efficient utilization of facilities. municipal. and stakeholder requirements. third-party providers or energy service entities. There is a need to constantly assess the demand for electric245 • .
246 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 12-1. which can lead to increased efficiency in overall customer energy use and to improve customer productivity. but in a manner that will hold mutual benefits. • Demand-side programs and initiatives can provide customers with the opportunity they desire to better manage their total energy cost and usage and the impact they have on the environment. Demand-side programs and activities include many new activities. • . Key Definitions ity and a need to alter course as economic or operating conditions change. such as electrification.
Demand-side Planning • 247 The impacts of customer programs are highly specific. On the other hand. Programs falling under this umbrella include demand response (such as time of use rates. • • What is Demand-side Planning? Demand-side planning is the planning of those activities designed to influence customer use of electricity in ways that will produce desired changes in the utility’s load shape—i. a program that encourages customers to install energyefficient refrigerators. Demand-side activities warrant the same level of attention and resources that are given to whole-market and other supply-side requirements—i. and calculations concerning reliability. Under this definition. Rather. distribution or generation assets are treated. rigorous analytical modeling. The extent to which market participants can successfully carry out demand-side initiatives will depend on a number of factors. Demand-side activities have evolved and expanded over the last few years as seen in Figure 12-1. the years of planning and scheduling. new efficient uses. they would be considered part of naturally occurring responses of consumers to prices. but there is a wealth of data and a very rapidly growing experience base on which to draw. and direct-load control). through either incentives or advertising. energy efficiency and distributed generation. operation. changes in the time pattern and magnitude of a utility’s load or the adoption of new electric technologies which displace fossil energy uses. and the availability of improved devices. Demand-side activities involve a deliberate intervention by the market participant through the establishment of an infrastructure and programs so as to alter the overall pattern and/or demand for electricity. customer purchases of energy-efficient refrigerators would not be classified as part of a utility program..e.e. and maintenance. The essence of demand-side programs lies in how providers can relate to their customers and to the regulatory community. They must be permitted to treat demand-side activities as assets in much the same way transmission. load management. meets the definition of demand-side programs. none of which will be more important than the active support of top management and regulators. While this distinction be- ..
demand-side alternatives warrant consideration Figure 12-1. Now. deploying new uses of electricity and deliberate increases in . Thus. declining financial performance. it does provide management with a great many additional alternatives.248 The Smart Grid: Enabling Energy Efficiency and Demand Response tween “naturally” occurring and deliberately induced changes in energy consumption and load shape is at time difficult to make. it is nevertheless important. technological. For areas with strong load growth. and regulatory and consumer concern about rising prices. Note also that demandside alternatives extend bey o n d d e m a n d re s p o n s e . economic. energy efficiency and load management to include programs designed specifically to incorporate new efficient uses of electricity which could add load overall or in peak and off-peak periods. capital requirements for new plants. For others. if 2007. Why Consider the Demand Side? Why should electric energy providers be interested in customers? Since the early 1970s. While embracing customers is not a cure-all for these difficulties. Growth in the Range of Deregardless of the regulatory mand-side Activities arrangements and business models involved. political. many providers are faced with staggering environmental concerns. significant fluctuations in demand and energy growth rates. and resource supply factors have combined to change the utility industry’s operating environment and its outlook for the future. These demand-side alternatives are equally appropriate for consideration by all electric sector participants. social. demand response and energy efficiency can provide an effective means to reduce the need for wholesale capacity while minimizing the environmental footprint.
and monitoring of activities selected from among a wide variety of programmatic and technical alternatives. expected load growth. Therefore. This is complicated by the various values customers and providers have. Selecting Alternatives Finally. The choice is complicated by the fact that the attractiveness of alternatives is influenced strongly by area-specific factors. and optimize return. however. Aside from these rather obvious cases. assessing which alternative is best suited for a given energy service provider is not a trivial task. Due to the large number of alternatives. and reserve margins. load factor. This wide range of alternatives mandates that providers seriously consider the demand-side by including it as a part of their overall planning process. reduce overall environmental impacts. demand-side planning encompasses planning. Changes in the load shape can permit adjustments in short-term market purchase. A Renewed Partnership . current generating mix. load shapes for average and extreme days. implementation.Demand-side Planning 249 the market share of energy-intensive uses can improve the utility load characteristics. and the use of less expensive energy sources as well as in sources with lower environmental impact. generation operations. evaluation. capacity expansion plans. Figure 12-2. it is inappropriate to transfer these varying specific factors from one service area or region to another without appropriate adjustments. such as the regulatory environment. changing the load shape that a provider must serve can reduce operating costs.
Issues in Demand-side Planning . or annually. and deploy new efficient uses have emphasized the impacts of a single alternative with little discussion on how that alternative was first selected. These infer eight critical issues that utilities considering the demand-side must resolve. during a certain season. The eight questions are listed in Table 12-2.250 The Smart Grid: Enabling Energy Efficiency and Demand Response ISSUES CRITICAL TO THE DEMAND-SIDE Figure 12-2 illustrates the needs which customers and providers perceive in demand-side programs. energy efficiency. The Utility Planning Process In some cases. Embracing the demand side can offer a utility a broad range of alternatives for reducing or modifying load during a particular time of the day. reviews of demand response. How Can Demand-side Activities Help Achieve Its Objective Although provider needs and characteristics vary widely within the industry. The preferred approach in assessing the overall viability of planning is Table 12-2. every utility should examine demand-side alternatives.
or improving customer satisfaction. setting specific operational objectives. and determining desired load shape modifications. Table 12-3 defines the load shape objectives listed. increasing earnings. This is illustrated in Figure 12-3. Clearly. whether you are a distribution utility. Discussion here focuses on a three-level hierarchy in utility planning related to demand-side activities: establishing broad objectives. transmission owner or Figure 12-3.Demand-side Planning 251 to incorporate the assessment as part of the utility’s strategic planning process. they differ depending on the position one has in the value chain (i. Hierarchy of Planning Objectives .. The first level of an energy service provider’s formal planning process is to establish overall organizational objectives.e. These strategic objectives are quite broad and generally include such examples as improving cash flow.
Load Shape Objectives* .252 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 12-3.
Specific operational objectives are established on the basis of the conditions of the existing provider—its business model. there is a need for a second level of the formal electric system planning process in which a provider’s objectives are operationalized to guide management to specific actions. independent system operator. regulation. Postponing the need for new construction through a demand-side program may reduce investment needs and stabilize the financial future of the market participant. environmental considerations. or energy service provider with no assets). Certain institutional constraints may limit the achievement of these objectives. including demand-side alternatives. they differ between states and certainly between investorowned and public power utilities. an examination of capital investment requirements may show periods of high investment needs. For example. and competition. As CO2 constraints emerge and tighten. and the obligation for some to provide service of reasonable quality to customers. environmental and system configuration. It is at this operational level or tactical level that demand-side alternatives should be examined and evaluated.Demand-side Planning 253 operator. power producer. regulatory. While all electric sector stakeholders face such institutional constraints. as well as across system operators and power providers. Operational objectives that can be addressed by demand-side alternatives include: • • • • • • • • • • Reducing the need for capacity Reducing the need for fossil fuels Reducing CO2 emissions Reducing or postponing capital investment Controlling electricity costs Increasing profitability Providing customers with options that provide a measure of control over their electric bills Reducing risks by investing in diverse alternatives Increasing operating flexibility and system reliability Decreasing unit cost through more efficient loading of existing and planned generating facilities . operating environment. While overall organizational objectives are important guidelines for electric system long-range planning. options will become only more desirable. case reserves. vertically integrated utility. These constraints represent the obvious regulatory environment that many players face—competition.
254 • • • The Smart Grid: Enabling Energy Efficiency and Demand Response Satisfying regulatory constraints or rules Increasing sustainability Improving the image of the utility Once designated. Demand Response & Energy Efficiency The obvious question in response to the above claims is: Can demand-side activities help achieve the broad range of operational objectives listed by merely changing consumer demand? The answer is that numerous industries have found that changing the pattern of the demand for their product can be profitable. The potential role that can be filled by these demand-side alternatives in a planning process looks rather ambitious. For example. regulator. Airlines offer night coach fares to build traffic during off-peak hours. the methods available for obtaining customer participation. To achieve these mutual benefits. operational objectives are translated into desired load shape changes that can be used to characterize the potential impact of alternative demand-side alternatives. telephone utilities have long offered reduced evening rates to shift demand and to encourage usage during non-business hours. the process of identifying potential candidates can be carried out more effectively . Movie theaters offer reduced matinee prices to attract additional customers. The concept that consumer demand is not fixed but can be altered deliberately with the provider. Nevertheless. and customer cooperating opens a new dimension in planning and operation. Because there are so many demand-side alternatives. All of these examples are deliberate attempts to change the demand pattern for a product to encourage efficient use of resources and thus profitability. What Type of Demand-side Activities Should Providers Pursue? Although customers and providers can act independently to alter the pattern of demand. and the likely magnitudes of costs and benefits to both provider and customer prior to attempting implementation. a provider must carefully consider such factors as the manner in which the activity will affect the load shape. the demand-side approach does provide management with a whole new set of alternatives with which to meet the needs of its customers. the concept of demand-side planning implies a relationship that produces mutually beneficial results between providers and customers.
Level I: Level II: • • • • Load Shape Objectives End Use Technology Alternatives Market Implementation Methods The first step in identifying demand-side alternatives is typically the selection of an appropriate load shape objective to ensure that the desired result is consistent with utility goals and constraints. Characterization of Demand-side Alternatives . Demand-side activities can be categorized in a two-level process in which the second level has three steps and illustrated in Figure 12-4. load forecasts may indicate that existing and planned generating Figure 12-4. For example.Demand-side Planning 255 by considering several aspects of the alternatives in an orderly fashion.
including demand response. Choosing between meeting peak versus reducing the peak becomes a balance between the costs and benefits associated with the range of available supply-side and demand-side alternatives. In general. There are nine major end uses which have the greatest potential.256 The Smart Grid: Enabling Energy Efficiency and Demand Response capacity will fall short of projected peak demand plus targeted reserve margins. a reduction in reserve margin can be tolerated. while others can realistically be useful for meeting only one or two of these objectives. or perhaps. The first dimension involves identifying the appropriate end uses whose peak load and energy consumption characteristics generally match the requirements of the load shape objectives. it is necessary to find ways to achieve it. However. space heating. Each of these end uses provides a different set of opportunities to meet some or all of the load shape modification objectives that have been discussed. that can augment the number of planning alternatives available to a utility. refrigeration. and water heating are the residential end uses with the greatest potential applicability for achieving load shape objectives. This process should consider the suitability of the technology for satisfying the load . space cooling. Once the load shape objective has been established. They are space heating. space heating. lighting) exhibits typical and predictable load patterns. The extent to which load pattern modification can be accommodated by a given end use is one factor used to select an end use for demand-side planning. interruptible rates. laundry.g. water heating. The second dimension of demand-side planning involves choosing appropriate technology alternatives for each target end use. some energy service providers and distribution utilities have achieved significant load shape modifications by implementing programs based on or including combinations of other end uses. and energy storage. and miscellaneous other uses. This is the second level in the identification process which involves three steps or dimensions. These end uses tend to be among the most energy intensive and among the most adaptable in terms of having their usage pattern altered. space cooling. There are also a number of demand-side alternatives. Several supply-side alternatives may be available to meet this capacity shortfall: additional peaking capacity can be built. lighting. direct load control. swimming pools. cooking. In general. each end use (e. extra power can be purchased as needed from other generating utilities.. Some of the end uses can successfully serve as the focus of programs to meet any of the load shape objectives.
it may not produce the desired results. The basic steps are: • • • • Establish the load shape objective to be met Determine which end uses can be appropriately modified to meet the load shape objectives Select technology options that can produce the desired end use load shape changes Identify an appropriate market implementation plan program . For example. In this case. Market implementation methods vary for different technologies. although heat pumps are appropriate for reducing domestic water heating electric consumption. Many of the individual options can be considered as components of an overall program and thereby offer a very broad range of possibilities for successful residential demand-side program synthesis and implementation. These options are described in greater detail in Table 12-4. Even though a technology is suitable for a given end use. including dynamic response These four main categories cover most of the currently available. or soon to be available. The different types of customer adoption techniques represent varying levels of utility involvement. they are not appropriate for load shifting. Residential demand-side technologies can be grouped into four general categories as described in Table 12-4: • • • • Building envelope alternatives Efficient equipment and appliances Thermal storage equipment Demand Response (energy and demand control options. The third dimension of demand-side alternatives deals with various methods for encouraging the customer to participate in the program. Taken in sequence. an option such as direct load control would be a better choice. customer options. represent a high degree of utility support in promoting demand-side programs. Customer awareness strategies can require less utility involvement. the four steps of activities described provide an orderly method for characterizing demand-side management alternatives.Demand-side Planning 257 shape objective. for example. two or more customer adoption strategies are used simultaneously to promote a given program. Direct incentive programs. Frequently.
environment. a detailed analysis of demand-side alternatives is not the starting point in the selection process. load shape summer and winter peaks. what is attractive to one utility may not be attractive to another. Chamberlin. Residential Demand-side Technology Alternatives How Do I Select Those Alternatives That Are Most Beneficial? Selection of the most appropriate demand-side alternatives is perhaps the most crucial question a service provider faces. customer mix. The question is difficult since the number of demand-side alternatives from which to select is so large. In addition.W. In other words. PennWell Publishing Co. such as regulatory.258 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 12-4. because the relative attractiveness of alternatives depends upon specific characteristics. Gellings and J. generation mix. However. 1993.H. C.. These evaluations typically require a great deal of data and a computer model for processing. Reference Demand-side Management Planning. . and load growth. Completing detailed evaluations of demand-side programs can be complex and may even appear overwhelming. transfer of results from one service area to another may not be appropriate.
Levels of Evaluation in Demand-side Planning 259 .Chapter 13 Demand-side Evaluation LEVELS OF ANALYSIS Because there are so many different demand-side alternatives available. they should be analyzed through a hierarchy of evaluation levels. starting with an intuitive selection. In the hierarchy. more detailed analysis is not outweighed by the cost of completing the detailed analysis. Figure 13-1. However. This is illustrated in Figure 13-1. continuing with an aggregate analysis. and ending with a detailed and comprehensive evaluation. To a large extent. the analyst must ensure that the potential value of additional. the appropriate level of analysis depends upon the importance of the decision that will be influenced by the analysis. quick and less demanding analysis is used to identify the most attractive candidates for more extensive analysis.
without extensive analysis. and the public at large are projected for the entire life of the program. at least initially. Comparison of the benefit/cost ratios will then yield preliminary ranking of programs. appropriate to achieve stated goals. and total energy sales. the starting point should be an intuitive selection of those alternatives that. and wholesale market or generating system data (such as costs for existing units). More detailed rankings can be made of combined programs. third-party providers. For this level of analysis. Options such as weatherization or thermal storage may be of lesser interest. The next level in identifying alternatives is a more quantitative analysis that examines costs and benefits to all parties affected by implementation of a specific program. the expected participation in the program. and of the operating characteristics of the demand-side alternatives. is based upon a thorough understanding of the conditions within the service area. the costs of implementation. of the wholesale electricity market or native generation portfolio and planned expansion. This analysis estimates changes in wholesale market prices or in the generating system and its operation that will result from the altered load shape produced by the selected demand-side alternatives. the process identifies a number of alternatives that are.260 The Smart Grid: Enabling Energy Efficiency and Demand Response Although every service provider does not need to go through all three levels of analysis or even the final level in selecting an alternative. the performance of the electric system from both an operational and a financial viewpoint is stimulated over time with and without the selected demand-side alternative. It builds heavily on the region’s existing analysis tools and cooperate models. other customers. To calculate the costs and benefits requires quantitative information on the impact of the alternative on peak. all expected costs and benefits to the provider. on the pattern of demand. In a typical detailed analysis. The final step in the selection of the most appropriate demand-side alternative is a detailed analysis of the most cost-effective alternatives. intuitive selection. For example. and often society at large. . the program participants. the participants in the program. Note that the intuitive selection process does not identify those alternatives that are in some sense “best” for the service area. Interested parties include the service provider. a provider concerned about its summer peak and low load factor could be investigating heat pumps to build winter loads or demand response programs to reduce the summer peak growth. The first level. seem to satisfy the provider’s and the utility’s needs. Rather.
for example.g. Since much of the information needed is related to the customer. Finally. Although the detailed analysis is the most comprehensive and in some sense the most “accurate” assessment. and on the demand-side program. Finally. the type of equipment (e. this implies accumulating information on the number of electric space heating customers. the amount of information prohibits its use on all potential alternatives. the annual heating requirements. Implicit in the selection process is a definite strategy to reduce the information requirements to manageable levels consistent with the trade-off between the data collection/analysis expense and the resulting level of accuracy in the evaluation. the comprehensive analysis is applied only to those alternatives that have the highest benefit-to-cost ratio.. This strategy focuses on quickly and efficiently reducing the number of alternatives appropriate for both a given service provider and geographic area.Demand-side Evaluation GENERAL INFORMATION REQUIREMENTS 261 Such analysis requires a great deal of information on the existing and anticipated wholesale market. Since demand-side alternatives focus on the customer. the selection process starts with informed personnel selecting those alternatives that seem most appropriate based upon insight into their service area. or heat pump) and likely future changes in heating requirements. electric furnace. taking into account customers’ costs and savings. marketing departments can plan a major role in gathering it. information on the load shape of the end use and changes in that load shape resulting from the implementation of the selected demand-side alternative is required. requires more quantitative information but for only those alternatives that have some promise for the service area. In addition. resistance baseboard heat. projections of customer acceptance and response to the program. obtaining the information for demand-side programs is often a challenge. Specifically. customer-related background information is essential in this first step. or more correctly on a customer’s end uses. the preliminary cost/benefit analysis. . While the information describing the current and anticipated wholesale market or the planned generating system and its operation is generally available from capacity expansion and production costing analyses. Thus. it is necessary to characterize the end use in the service area. any native generation. The next step. In the case of space heating. must be developed for the planning horizon.
in most cases. Table 13-1. this is a unique combination. TRANSFERABILITY Caution must be exercised in transferring results of a selection process from one service area to another. Just as in the analysis of supply-side alternatives. There are a number of reasons for this. Concerns in Evaluating Demand-side Alternatives SYSTEM CONTEXT Demand-side alternatives must be evaluated in the context of the supply-side alternatives—the supply system. Some of these are listed in Table 13-1. the results cannot. While the analysis techniques. the attractiveness of alternatives depends upon the existing and planned supply system and on the characteristics of the alternatives themselves. Demand-side alternatives alter the load shape and thus affect the operating efficiency and future capacity additions. Second. and in some cases data. electric space heating and electric water heating . First. Most often. customer end-use characteristics often differ between service areas. can be transferred. For example. Translating these effects into specific cost savings depends upon the characteristics of the supply system. cost savings resulting from the implementation of demand-side alternatives depend upon the provider’s load shape and the wholesale market or generating system it has been designed to serve.262 The Smart Grid: Enabling Energy Efficiency and Demand Response The remainder of this discussion focuses on a number of important concerns in the evaluation process.
requiring information in four major categories: • Service area-specific customer and end-use characteristics (type of equipment in use. stock estimates of this equipment. they give the impression of greater reliability. • • • It is often said that demand-side planning data tend to be “softer” and much more customer oriented than supply-side data. cooling or weatherization programs change. dwelling size. the total impact resulting from the same saturation will be quite different. Energy savings resulting from heating. Because supply-side data tend to be much more hardware and engineering oriented. Operating/technical characteristics of the alternatives. it actually involves the same uncertainties. multi-family). Moreover. initial cost). patterns of usage). since supplyside planning is based on projected future energy requirements (i.e. even for providers in the same geographic area. reliability. DATA REQUIREMENTS Detailed analyses of demand-side alternatives are data intensive. Thus.. customer demands).. depending upon dwelling type (e. COST/BENEFIT ANALYSIS The cost/benefit evaluation approach is the preferred approach to assess demand-side alternatives. and climatic conditions measured (e.. critical variables in supply-side planning are often known with no more accuracy than demand-side variables. Customer acceptance of alternatives.g. However.Demand-side Evaluation 263 saturation levels are often quite different. Customer characteristics and climatic conditions also influence the impacts on a per unit or per customer basis.g. single-family vs. Although analysts typically minimize . by heating degree days). Characteristics of the supply system (operating costs. while the impact of an alternative may be the same on a per unit basis.
must be estimated and compared over the planning horizon. this measure is inappropriate for evaluating some demand-side alternatives. a program designed to build off-peak use of electricity. increased utilization of existing capacity will lower the unit cost of power—clearly a benefit to both the customers and the utility. In this comparison. it is appropriate to perform the analysis on the desired reserve level. Although the discussion has dwelt upon savings in monetary costs up to this point. such as an add-on heat pump program. the costs and benefits of serving the load shape. Among these are: • • • • • • • • • • • • Potential use of CO2 trading Cash flow Magnitude of start-up Public relations reaction Compatibility of alternatives Uncertainty/risk associated with success of program Availability of competent installation/products Customer reaction/participation Real or perceived customer health/safety issues Ease/convenience of service installation Conformance to building codes and standards Regulatory/institutional limitations and opportunities . For utilities with excess reserves attempting to build load. will increase revenue requirements. with or without the demandside alternative is place. some estimates for the cost of outages must be included in the analysis. Regardless of whether the analysis uses required revenues or unit costs as the measure of program impact. For example.264 The Smart Grid: Enabling Energy Efficiency and Demand Response future revenue requirements in evaluating supply-side alternatives. Thus. NON-MONETARY BENEFITS & COSTS Factors other than easily quantified monetary benefits and costs are often important in the selection of demand-side alternatives. there are other important factors influencing the selection of these alternatives. However. it is important to perform the analysis on an equivalent unit basis. two systems are assumed to be equivalent if they serve the load at the same level of reliability. In cases where the reserve levels are not equal.
as well as the resulting level of use of that appliance. However. Projections of the purchase of appliances and the behavior of customers combine to produce a forecast of the residential load shape. age. the entry of new industries into the marketplace. Thus. Similarly. and education) Appliance characteristics (saturation. not to meet utility demand growth. the introduction of new processes. it is important to differentiate naturally occurring changes in the load shape and those changes resulting from demand-side alternatives. The residential load shapes are influenced by the customer’s decision to purchase an appliance. they are typically not included in a formal quantitative analysis. combined with the design characteristics . cost and age) Behavioral factors Utility marketing/program availability Mandated standards Government programs The action taken by consumers once an appliance or device has been purchased and installed. This focus may give the impression that they only load shape changes that occur are those induced by demand-side programs and activities.Demand-side Evaluation 265 Because such variables are difficult to quantify. they are incorporated qualitatively in the summary assessment of the proposed program. installation of equipment and its utilization affect the load shape. demand-side planning focuses on deliberately changing the load shape so as to optimize the entire power system from generation to delivery to end use. and the growth of end-use stock in the residential and commercial sectors. Customers purchase electricity to satisfy a need for energy. usage. Numerous factors influence both the selection and utilization decision. System load shape changes can occur naturally due to fluctuations in customer mix. What Changes in the Load Shape Can Be Expected By Implementing Demand-side Alternatives? As outlined in the introduction. Certainly this is not the case. there is increasing interest in explicitly quantifying CO2 savings from demand-side programs. including: • • • • • • • Price of electricity and competing fuels Demographics (income. to examine the impact of demand-side alternatives. in the commercial and industrial sectors. Instead.
g. Factors Influencing System Load Shape The same basic mechanism used to describe the load shape and its change over time can also be used to estimate changes in that load shape due to demand-side programs and activities. substitution of a heat pump for an electric furnace). Figure 13-2. Since in many cases there is no customer investment. it is important to differentiate the effects of each.266 The Smart Grid: Enabling Energy Efficiency and Demand Response of the device. Changes in an individual customer’s load shape result from two different factors: • Changes in customer utilization of existing appliances or equipment (e. the changes may only be temporary. the emphasis is on how the customer responds and how permanent that response is. these factors are not mutually exclusive and often interact. . In the case of behaviorally induced changes. System load shape changes are the cumulative response of individual customer load shape changes plus the load contributed by new customers. results in the load shape change or the customer response as illustrated in Figure 13-2.g. installation of clock thermostat setback in response to an advertising campaign or conservation). While both of the above factors produce changes in the load shape. • Obviously. with customers eventually reverting back to their original behavior patterns.. Changes in the operating characteristics or technology for a given end use (e..
there may be changes resulting from cycling air conditioners that can be influenced by the use of a “smart” thermostat. Interactions of alternatives must be carefully examined and their implementations analyzed. as well as its improved design characteristics. Load shape changes that can be expected from the implementation of demand-side alternatives vary. Promotion of heat pumps not only affects heating requirements. DYNAMIC SYSTEMS Load shape impacts of demand-side alternatives may change over the planning horizon. the load shape may still change as the customer becomes more energy conscious or responds to a demand response program. Demand-side alternatives are often promoted and implemented as an integrated program. Moreover. Similarly. However. This should not be surprising since factors unique to the service area influence changes in the system load shape. As such. PROGRAM INTERACTION Alternatives tend to interact making the estimation of changes in the load shape difficult. The critical question remains—what is the level of customer acceptance of the device? Acceptance of demand-side alternatives is discussed in more detail later. energy requirements are lowered for those customers participating in both programs. The remainder of the discussion in this section focuses on two critical issues related to load shape impacts: program interaction and dynamic systems. these changes are limited when compared to the change resulting from the improved operating characteristics of an advanced replacement heap pump. the changes in the load shape tend to be “permanent” and more predictable. but also cooling loads.Demand-side Evaluation 267 The technology-induced changes in the load shape depend upon the relative usage level of the device. Just as the system load shape is dynamic and is . The kind of thermostat “knows” the future power interruption and automatically lowers the indoor temperature in anticipation of expected reduced air conditioner operation. Returning to the heat pump example. if that heat pump program is coupled to a weatherization program.
Therefore. It has only recently (albeit modestly) been recognized nationally that marketing can be used to shape load as well as to stimulate it. Some customer-related departments can make valuable contributions to developing demand-side solutions to load problems and to taking advantage of load opportunities. is that the load shape is dynamic and changes over the planning horizon.268 The Smart Grid: Enabling Energy Efficiency and Demand Response expected to change over time. The net effect of these opposing trends depends on the specific conditions present in the service area. however. Table 13-2 gives examples of load shape changes resulting from select demand-side alternatives. and implement successful marketing programs. assuming the same level of participation in the program. For many utilities. evaluate. Thus. data collected. For example. as electricity costs accelerated and national targets for utility use of petroleum and natural gas were set. the total amount of control tends to increase. one of the first and most fundamental issues to be addressed in the development of marketing programs is to locate and pull together the expertise and tools necessary to identify. The important message. But. Failure to recognize and account for this can lead to serious future supply problems. this means that even if the best analysis techniques have been applied. supply-side issues took on a greater importance. On the other hand. so are the load impacts of many demandside alternatives. the stock of central air conditioners is still growing due to increasing saturation levels and/or customer growth.” In the demand-side planning context. Assuming the same amount of control. It is an old adage that “nothing happens until someone sells something. the amount of control that can be exercised over the cooling load using direct load control without a dynamic system will change over the course of the planning horizon. energy services departments successfully stimulated company growth by directing numerous advertising and sales efforts such as the “Live Better Electrically” Program conducted in cooperation with appliance manufacturers. customers are replacing old and inefficient units with much more energy efficient ones. How Can Adoption of Demand-side Alternatives Be Forecasted and Promoted? For many years. and technol- . During the 1970s and 80s. these efficiency improvements would tend to decrease the impact of the load control interruptions. many of these marketing efforts were dismantled and the marketing staff dispersed to other departments.
potential customer interest in a demand-side program or activity may be based on a number of factors including: • • Price of electricity and competing fuels Demographics (income. cooling. artificial illumination. Customers do not purchase energy for the sake of consuming it.Demand-side Evaluation 269 Table 13-2. or other conveniences. motive power. This service brings warmth. per se. and education) . the success of demand-side activities often hinges on the ability to persuade customers to actively participate in the program. age. It is important for utilities to understand how these decisions are reached. but instead are interested in the service it provides. Typical Load Shape Changes Resulting From Select Demand-side Alternatives ogy developed. As discussed in the previous section.
usage. ESTIMATING FUTURE MARKET DEMAND & CUSTOMER PARTICIPATION RATES Projections of future market demand depend on a large number of factors. timing. To make these successful. Caution should be used. Increase or modify advertising/promotional efforts to encourage greater response from the existing market. including: • Availability. cost and age) Behavioral factors Utility marketing/program availability Mandated standards Providers must also be sensitive to the fact that the stage a consumer has reached in adopting a new product or service has a bearing on the type of marketing that should take place. The concept of “optimal market share” can be explored if the utility can quantify the benefits associated with alternative market share levels. however. frequency. The provider may: • • • Attempt to expand the number of people comprising the target market. The goal of the programs and their associated marketing effort is often to increase the engagement in the demand-side program or activity. and use of programs and promotions . a number of options are worth considering. in setting goals near the upper limit of market potential due to the possible diminishing returns of marketing expenditures over time.270 • • • • The Smart Grid: Enabling Energy Efficiency and Demand Response Appliance characteristics (saturation. it is important to know the current market penetration of certain end-use devices. Enlarge the number of devices covered in program to approach the total market potential. If market penetration is deemed too low.
Statistical demand analyses include additional variables that may either co-vary or cause a change in the effect of product and service requests. and field representatives regarding equipment sold and devices placed into the field. buyers having less clear intentions and those unwilling to report their intentions affect the reliability of results. construction starts. . are the independent variables. income. Price. Some use this technique for operational programs that have stable customer response rates. population. etc. cycles. households. pilot programs are developed and implemented to either a small part of a provider’s service territory or informally offered to customers as part of another program in order to measure and evaluate customer responses. sales personnel. Simple “yes—no” questions can be asked or a “full purchase probability scale. and seasons. Time series analyses rely on historical buyer data to estimate future consumptive decisions. including trends. etc. including: Buyer intention surveys Middleman estimates Market tests Time series analysis Statistical demand analysis Buyer intention surveys solicit buying intentions for an upcoming period from a sample of target consumers. are viewed as dependent variables and price. A number of components of historical information are often analyzed. may be used.Demand-side Evaluation • • • • • • • • State of the economy Seasonality Value of program incentives 271 Market demand can be projected by several methods.. and household formation are the types of variables used.. audits. Sales. However. installations. Where there is no prior experience with a program.” which is similar to a Likert Scale in refining customer responses. Market tests/pilot programs are particularly appealing where a new product or service in planned and other forms of measurement are not appropriate. Middleman estimates consist of information supplied by dealers.
The two most common forms of qualitative research are in-depth interviewed and focus group discussions. concept testing. published by the Electric Power Research Institute. and develop an understanding of the consumer. The accuracy of the resulting estimate. Primary data are collected to answer specific marketing or estimating needs. *Adapted from Resource Planning Associates.m EPRI EA-2702 (RP2045-2). Both techniques are used to explore issues. to forecast sales. Frequently. behavior. The information can be used to estimate market potential. the estimator of market penetration must consider these factors: • • • The accuracy of the data and its relevance to the estimating task at hand. experimentation. Experimentation includes test marketing. and a variety of other relatively powerful techniques designed to establish causality. October 1982. Regardless of the type of research data selected.. Certain archival records generated by market participants and other end-use technology-related industries might also be classified as observational. qualitative research provides the foundation for quantitative research by clarifying relevant concepts and developing research hypotheses. The concept of control groups is central to experimentation. Quantitative research can be further subdivided into observational techniques. and buying intentions. Inc. or to analyze consumer preferences. for example. identify motivations and behavior. The cost (time and money) to collect and analyze the data. and surveys. Primary data collection is usually categorized in two ways: qualitative and quantitative research. Observational techniques include a variety of unobtrusive measures. utility metering of electrical use.272 The Smart Grid: Enabling Energy Efficiency and Demand Response CONSUMER & MARKET RESEARCH* Secondary and/or primary market data are collected and analyzed as inputs to the market analysis methodologies. Surveys can provide data on socioeconomic characteristics. attitudes. Methods for Analyzing the Market Penetration of End-Use Technologies: A Guide for Utility Planners. EPRI has also recently funded a project on “Identifying Consumer Research Techniques for Electric Utilities” RP1537) .
S. CUSTOMER ADOPTION TECHNIQUES Executives have a number of market implementation methods from which to choose. and can serve to define the phenomenon. Most of these program options fall into one of the following categories: • • • • • • Alternative pricing (rate structures) Direct incentives Customer education Direct customer contact Trade ally cooperation Advertising and promotion Table 13-3 presents a number of specific program options within these categories. Department of Commerce.Demand-side Evaluation 273 Secondary sources include data collected for some purpose other than estimating. . The use of secondary data in estimating market penetration has advantages and disadvantages. the U. Bureau of Census. On the other hand. and there may be problems associated with the way the data were originally collected or are presented. Many of these alternatives have been used successfully in the past. collects data on population and housing that can be used to estimate the penetration of central air conditioning in residential buildings. For example. These data usually do not answer the precise estimating needs. usually less expensive. External data are usually defined as published information. A further delineation of secondary data research concerns the source—internal or external. and the organizational philosophy of the utility. Internal secondary data include proprietary price and sales records. secondary data are easily available. The selection of the incentives typically depends on a provider’s prior experience with similar programs. the receptivity of state regulatory authorities.
274 The Smart Grid: Enabling Energy Efficiency and Demand Response Table 13-3. Examples of Customer Adoption Techniques .
Issues in Implementing a Load Management Program for Direct Load Control.Demand-side Evaluation 275 What is the Best Way to Implement Selected Demand-side Programs?* With a few exceptions. Conservation. many of the current programs being implemented are either “pilot” programs or larger efforts that are at a preliminary stage. EPRI EA-2904 (RP2050-8). Program implementation involves the many detailed day-to-day decisions that must be made to realize the goals of demand-side management programs. EM-2649 (RP1940-1). and Solar End-Use Projects. Report No. Inc. presentation made at the EPRI Seminar on “Planning and Assessment of Load Management. measurable. and obtainable goals. program implementation refers to carrying out demand-side programs after their cost-effectiveness has been determined during the demand-side program planning and evaluation phase. Inc. .” December 1982.” Synergic Resources Corporation. Published by the Electric Power Research Institute. March 1983.. Report No. The plan includes a set of carefully defined. RP2050-11. Electric utility Sponsored Conservation Programs: An Assessment of Implementation Mechanisms (forthcoming. a demand-side program should begin with an implementation plan. Energy Utilization Systems. November 1982.. Energy Management Associates. In this overview. Electric Power Research Institute. 1982 Survey of Utility Load Management. A program logic chart can be used to identify the program implementation process from the point of *Much of the material presented in this section is adapted from: Linda Finley. “Load Management Implementation Issues. PROGRAM IMPLEMENTATION ISSUES Implementing demand-side programs involves three major considerations: • • • Program Planning Program management Program logistics Program Planning As with any sophisticated program. Only a limited amount of information has been compiled on major program implementation experiences. Published by Electric Power Research Institute.
Program Management The implementation process involves many different functional groups or departments within the service provider. Actual program implementation can be checked against the plan and major variances reviewed as the occur. For example. The careful planning that characterizes other operations should carry over to the implementation of demand-side programs. because the industry is entering a new era—the era of providing energy services. even more so now. This requires closer interaction with . in a direct load control program. It is always important to establish good rapport with customers. Careful management is required to ensure efficient implementation. such as meeting customer eligibility requirements. The sample list of functional responsibilities in an implementation program (see Table 13-4) gives an indication of the activities that may be included in such a manual. The need for cost accounting. facilities. device installation. A customer adoption plan that coordinates the use of mass media and other advertising and promotional activities (such as bill inserts and direct mail) should be carefully integrated into the implementation program. if periodic status reports are required.276 The Smart Grid: Enabling Energy Efficiency and Demand Response customer response to program completion. Ongoing program management is also extremely important. A program implementation manual is a useful tool to provide program personnel with necessary policy and procedure guidelines. The programs are expensive and prudent planning will help assure program efficiency and effectiveness. monitoring employee productivity and quality assurance should be addressed. The variety of activities and functional groups involved in implementing demand-side programs further accentuates the need for proper planning. equipment. decision points. Program Logistics Program support includes staffing. the requisite input data and the reporting of key performance indicators must be carefully included. completing credit applications. Managing the needed widespread activities requires a complete understanding and consensus of program objectives and clear lines of functional authority and accountability. and post-inspection can be defined. For whatever reason. and training requirements. the use of direct incentives necessitate close monitoring of program costs.
and good rapport is necessary regardless of the demand-side program. as well as quick response to customer concerns. such equipment has been termed “technology alternatives” to contrast it with the other three dimensions or aspects of demand-side alternatives—the intended program objective. Sample Functional Responsibilities in Marketing Program Implementation customers. Customer concerns should be addressed at all levels of program design and implementation. the affected end use.Demand-side Evaluation 277 Table 13-4. and the selected cus- . Effective marketing and public education campaigns. Many demand-side programs and activities include installing a specific piece of equipment or hardware that will alter customer energy use to benefit both the customer and the utility. will help achieve this goal. In this report.
failures may be attributed either to malfunctions of the devices or to the communication links. maintenance. The selected implementation marketing measures should be compatible with any technology alternative that is part of the demand-side program. changes in demand-side technology (such as improvements in the efficiencies of space heating and cooling equipment) and evolving provider needs (such as automation of the utility’s distribution system) should be evaluated. or marketed as part of the demand-side program. In most cases. Identifying Quality Assurance Considerations Because of the possible large number of dispersed devices. and repair of the numerous utility- and third-party-owned and operated devices that are included in a demand-side program.278 The Smart Grid: Enabling Energy Efficiency and Demand Response tomer adoption technique or marketing strategy. The special issues related to such demand-side programs involving utility or third-party ownership and installed equipment include selecting the proper equipment or hardware. service providers can improve customer and utility system performance by considering quality assurance in the implementation program. distribution utilities need also to identify the safeguards that will ensure proper equipment use. In the example of a direct load control program. a mix of implementation techniques will be used. establishing an appropriate customer adoption program. Providers can reduce operating costs by developing prudent scheduling policies for . Selecting the Proper Equipment or Hardware Stakeholders need to evaluate a variety of conflicting factors if they are specifying the functional requirements for equipment or hardware. In the equipment selection process. Some of these technology alternatives are installed. developing quality assurance programs. In addition. Developing an Installation and Maintenance Schedule Many expenses are involved in the installation. Establishing an Appropriate Implementation Program Some marketing programs are better suited to promote the installation of certain demand-side technology alternatives. The specifications for any new equipment must be coordinated with existing customer and utility hardware. used. and developing an installation and maintenance schedule.
and careful coordination is required. An equally rigorous approach is needed to implement the demand-side alternatives. and this requires the careful coordination of all parties.Demand-side Evaluation 279 their limited crew resources. all the steps associated with “implementing” a supply-side program— takes years of planning and scheduling. and operating a generating plant—that is. and. market participants may want to create a high-level. demand-side planning project team with representation from . Figure 13-3 illustrates the typical process. THE IMPLEMENTATION PROCESS Developing. The stages may include forming an implementation project team. Figure 13-3. finally. Efficient scheduling of equipment ordering and installation is helpful in reducing unnecessary program delays. expanding to systemside implementation. There are many utility and non-utility actors involved in the implementation process. and strict construction scheduling. calculations concerning reliability and maintenance. installing. completing a pilot experiment and demonstration. Implementing demand-side programs involves almost every functional department within a service provider. Stages in the Implementation Process of Demand-side Programs or Activities The implementation process takes place in several stages. rigorous analytic modeling. This “time-phased” process tends to reduce the magnitude of the implementation problem because pilot programs can be used to resolve program problems before system-wide implementation takes place. As a first step.
How Should Monitoring and Evaluation of the Performance of Demand-side Programs and Activities Be Best Achieved? Just as there is need to monitor the performance of supply-side alternatives. When limited information is available on prior demand-side program experiences. and with the overall control and responsibility for the implementation process. staffing. It is important for management to establish clear directives for the project team. foster advanced planning and organization within a demand-side program. and program administration requirements.* The ultimate goal of the monitoring program is to identify deviations from expected performance and to improve both existing and planned demand-side programs. Tracking and review of program costs. and provide management with the means of examining demand-side programs as they develop. additional effort must be given to refining the training. . then initiating the full-scale program may be considered. marketing. If the pilot experiment proves cost-effective. Monitoring and evaluation programs can also serve as a primary source of information on customer behavior and system impacts. including a written scope of responsibility. *Portions of the material presented in this section have been adapted from various evaluation studies by Synergic Resources Corporation and by Eric Hirst and colleagues at Oak Ridge National Laboratory. After the pilot experiment is completed. Pilot experiments may be limited either to a sub-region or to a sample of customers.280 The Smart Grid: Enabling Energy Efficiency and Demand Response the various departments. customer acceptance. and scheduled milestones can help determine whether the demand-side management program has been implemented as planned. a pilot experiment may precede the program. project team goals and time frame. In monitoring the performance of demand-side programs. two questions need to be addressed: • • Was the program implemented as planned? Did the program achieve its objectives? The first question may be fairly easy to answer once a routine monitoring system has been adopted. there is a need to monitor demand-side alternatives.
• The two monitoring approaches tend to address different sets of concerns. With a descriptive approach. this measurement can be difficult because other factors unrelated to the utility’s demand-side program can have a significant impact on customer loads. To assess load shape impacts requires the careful definition of a reference baseline against which load shapes with a demand-side management alternative can be judged. those changes . Experimental—Use of comparisons and control groups to determine relative program effects on participants or non-participants. Thus. is not adequate for systematically assessing the load shape impacts of the demand-side program.Demand-side Evaluation 281 The second question can be much more difficult to answer. the frequency of demand-side equipment installation. The reference baseline reflects those load shape changes that are “naturally occurring”—that is. therefore. Information such as the cost per unit of service. and the number of customer complaints. in terms of both administrative procedure and target population characteristics. management should be aware of basic program performance indicators. however. an assessment of program success must begin with measuring the impact of the program on load shapes. can be useful in assessing the relative success of a demand-side management program. activities completed. or both. As noted previously. Recordkeeping and reporting systems can be helpful in completing descriptive evaluations. two common approaches can be taken: • Descriptive—Basic monitoring that includes documentation of program costs. services offered. demand-side program objectives can be best characterized in terms of load shape changes. MONITORING AND EVALUATION APPROACHES In monitoring and evaluating demand-side programs. the type of participants (single family households or other demographic groups). customer acceptance rates. However. and characteristics of program participants. The descriptive evaluation. it may be useful to incorporate both in programs.
the reference might be a control group of customers not participating in the program. from retirement or from the second spouse joining the labor force. This. and program organization. the reference baseline might be the existing forecast with appropriate adjustment to reflect the short-term conditions in the service area. of course. If the “before” reference is used. In some cases. Adding an extra appliance (such as a window air conditioner) can more than offset any reductions in energy use resulting from a weatherization program. In other cases. Similarly. most of these issues can be grouped into one of four categories: monitoring program validity. requires a great deal of information on both groups to allow for proper matching. Internal validity is the ability to accurately measure the effect of the demand-side management program on the participant group itself. income. data and information requirements. work schedules. ISSUES IN PROGRAM MONITORING AND EVALUATION Although there are numerous issues facing utility management as it undertakes demand-side program monitoring.282 The Smart Grid: Enabling Energy Efficiency and Demand Response unrelated to the demand-side program itself. it is often necessary to adjust data for subsequent changes in the customer’s appliance or equipment stock and its usage. The energy consumption and hourly demand of program participants could also be measured before they joined the program to provide a “before” and “after” comparison. that group must have characteristics similar to those of the participants. and age of head of household. the effect of direct load control of a water heater can be altered by changes in a customer’s living pattern resulting. including not only appliance stock data but also such information as family size. for example. If the reference point is a group of non-participants. management concerns. External validity is the ability to generalize experimental . Monitoring Program Validity Monitoring programs strive to achieve two types of validity: internal and external. The “before” situation must be clearly characterized so that appropriate impact of the program can be measured.
There are a number of reasons for this: • Some information is needed on a “before” and “after” program initiation basis. Confounding influences refer to non-program-related changes that may increase or decrease the impact of a demand-side program. and field surveys. Sources of evaluation data include program records. The data must be valid (measure what it is supposed to measure) and reliable (the same results would occur if repeated. controlled water heating may reduce peak load for a sample of participants. The data collection system should be designed before the implementation of the demand-side program itself. Threats to monitoring program validity usually fall into two categories: problems associated with randomization and problems associated with confounding influences. In some cases. within an acceptable margin of error). validating. Some data collections take considerable time. managing. Typically. changes in personal income. particularly if metering of customer end uses has to be performed. Randomization refers to the degree to which the participating customer sample truly represents the total customer population involved in the demand-side program. telephone surveys are used by utilities to complete field surveys. The cost of data collection is likely to be the most expensive part of the evaluation study.Demand-side Evaluation 283 results to the entire population. The list of potential sources of confounding influences is extensive. inflation. Data collection costs can be reduced with proper advance planning and by having sufficient recordkeeping and reporting systems. metering. and analyzing data in the monitoring and evaluation program. additional data must be collected before the start of the program. For example. customer bills. Data and Information Requirements Data and information requirements involve the entire process of collecting. • . and plant openings and closings. If the “before” data are inadequate. including weather. but there is no guarantee that all customers will react in a similar fashion. It can also refer to the degree of bias involved in assigning customers to the experimental and control groups. the effect of these non-program-related changes can be greater than the effect of the demand-side program.
motivations for participating. Management Concerns Monitoring and evaluation programs require careful management attention. Developing a strong organizational commitment to adequately plan. evaluation design . Recognizing that monitoring and evaluation programs can be data intensive and time consuming. evaluation design.284 • The Smart Grid: Enabling Energy Efficiency and Demand Response Monitoring the effect of the demand-side alternative throughout the program allows for adjustments and modifications to the program. and satisfaction are very important in evaluating the overall success of a program. therefore. • • • • MONITORING AND EVALUATION PROGRAMS Monitoring and evaluation programs can be organized in four stages: pre-evaluation planning. In addition. coordinate and fund monitoring programs. evaluation program costs must be kept in balance with benefits. awareness of the program. The information-gathering mechanisms may already be in place at many utilities. information on participant characteristics. Organizing and reporting the results of the evaluation program to provide management with a clear understanding of these programs. The expertise gained in conducting these activities is helpful in considering the development of a monitoring program. Some of the most important hurdles that must be overcome in the management of a monitoring program include: • Assuring sufficient advanced planning to develop and implement the monitoring and evaluation program in conjunction with the demand-side activity. Load research programs and customer surveys have long been used to collect data for forecasting and planning. Establishing clear lines of responsibility and accountability for program formulation and direction.
Pre-program Planning Checklist . A decision whether to use descriptive or experimental or some combination of the two must be made. Evaluation Design focuses on organizing the overall evaluation effort and developing of specific program evaluation designs. Refer to Table 13-5. Pre-Evaluation Planning consists of working out beforehand the conceptual and logistical questions that will be encountered during the full-scale program. Once the questions on the checklist have been answered. an overall assessment can be made of the needs of a monitoring and evaluation program. and program feedback. The major elements of an evaluation design are: • • • • • • Evaluation Objectives Evaluation Approach Data Requirements and Collection Strategy Data Analysis Procedures Final Report Format Program Cost Table 13-5.Demand-side Evaluation 285 implementation. The “pre-program planning checklist” presented below will help guide this phase.
in different geographic locations. Cost comparisons for major end uses. and recordkeeping. Information available from sources outside the utility includes: Energy consumption data for residential appliances. primarily space heating. the information can be obtained from different organizations. Customer responses to time-of-use rates. Typically. and water heating. In-house programs or special studies on specific end uses. some adjustments and generalizations are often required. for different time periods. . analysis. including monitoring. cooling. extensive and a major hurdle in getting started in demand-side planning. Thus. Load shapes for selected appliances and adjustments to make them appropriate to selected service areas. and using different collection methods. Program Feedback consists of reviewing the evaluation results and determining whether any program changes are warranted. In any case. The information requirements to address these issues are. there is often a sufficient information base to initiate a preliminary analysis of demand-side alternatives. or water heating. electric space heating. Consumer behavior surveys.286 • The Smart Grid: Enabling Energy Efficiency and Demand Response Program Management Plan Design Implementation refers to initiating the evaluation framework according to the action plan. Load research data on customer classes or specific end-use load shapes. at first glance. In-house information that is of particular use includes: • • • • • • • • • Customer appliance surveys. such as cooling. How Do I Get Started in Addressing Demand-side Planning Issues as They Relate to My Utility? The previous discussion has focused on seven major issues related to the assessment of demand-side alternatives for an individual energy service.
1993 . Chamberlin. Analysis tools for the evaluation of demand-side alternatives. C.H. Fairmont Press.Demand-side Evaluation • • • • 287 Descriptions and operating characteristics of specific demand-side alternatives. Customer acceptance and market penetration of selected demandside alternatives. References Demand-side Management Concepts and Methods.W. Gellings and J. Housing characteristics and space and water heating system by dwelling type.
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S. White Plains.” Fact Sheet. The Keystone Center. Electric Power Research Institute. . edited by F. Berkeley. Department of Energy. Quantum Consulting Inc. N. Total supply and use of energy. UK: 2007.. Gellings. CO: May 2003. International Energy Agency. Wikler. Cambridge.. L. The Economics of Climate Change: The Stern Review. Vol. LLC. 1997-2006.. Electric End-Use Energy Efficiency Potential.W.290 The Smart Grid: Enabling Energy Efficiency and Demand Response Handbook of Energy Efficiency and Renewable Energy. Draft. G. NY: 2007.S. DC: 2007. New York. Issue 9.. “Merkel confronts German energy industry with radical policy overhaul. Kreith and D.Y.” The Electricity Journal. Targets. 2007. and W. The Keystone Dialogue on Global Climate Change. The Green Grid: How the Smart Grid will Save Energy and Reduce Carbon Emissions. and Ghosh. 2007.. signed in San Francisco. Cambridge University Press. Policies. U. C. Paris. Stern.H. Final Report. and Measures for G8 Countries. “Assessment of U. United Nations Foundation. Vol.. CA: Dec. The Power to Reduce CO2 Emissions: The Full Portfolio. Palo Alto. 2004. EPRI. 19. Nature Conservation and Nuclear Safety. Palo Alto. Specker. S. Xuejun. EPRI. Memorandum of Understanding between the Department of Energy of the United States of America and the National Development and Reform Commission of the People’s Republic of China Concerning Industrial Energy Efficiency Cooperation. France: April 2007. Washington. 2007. D. Statistics Norway. R1—Residential Lighting Best Practices Report. and Mansoor. Goswami. Taking Action Against Global Warming: An Overview of German Climate Policy. CA: pending publication.” Herald Tribune. A. September 2008. Standby Power Use and the IEA “1-Watt Plan. New York.” 2007 Summer Study on Energy Efficiency in Industry.. The ElectriNetSM: An Electric Power System for a Carbon-Constrained Future. CRC Press. Lafayette. Price.. November 2006. National Energy Efficiency Best Practices Study. July 24-27. “Constraining Energy Consumption of China’s Largest Industrial Enterprises Through the Top-1000 Energy-Consuming Enterprise Program. September 2007. Realizing the Potential of Energy Efficiency. CA and Global Energy Partners. Gellings. Federal Ministry for the Environment. Statistisk Centralbyra. C. July 4. September 12.
Dimensions of Demand Response: Capturing Customer Based Resources in New England’s Power Systems and Markets—Report and Recommendations of the New England Demand Response Initiative. Global Energy Partners. No. “Demand Response Enabling Technology Development.” Electric Power Research Institute. E.W. Edison Electric Institute Executive Symposium for Customer Service and Marketing Personnel. July 23.Appendix 291 CA: August 2007.” Power Tools.J. No. FERC Docket AD06-2-000. No. May 18. “Transformer Efficiency. International Energy Agency. EPRI. “Distribution Efficiency Initiative. U. 58189. 197. 2007. LLC. 4.. Vol. November 1982. Paris. December 1990. Winter 2006-2007. August 2006. DOE to Conduct Energy Efficiency Audits on up to 12 Facilities. April 23.S. Program Manager. 1984-1988. and China Sign Agreement to Increase Industrial Energy Efficiency. Lafayette. Federal Register. Clark W. John L. 72. Gellings. World Energy Outlook 2006. Vol. France: 2006. report number E05-139. EPRI Report CU-6914. Palo Alto. 2005. et al.W. Assessment of Demand Response and Advanced Metering—Staff Report.” M. 2006. Gellings. “Retrofitting Utility Power Plant Motors for Adjustable Speed: Field Test Program. 10 CFR Part 431. Gellings. U. 1. January 1981. 2002. Department of Energy.” State of New Jersey—Board of Public Utilities—Appendix II.” Global Energy Partners. Arens. Fetters. Testimony of C. Energy Conservation Program for Commercial Equipment: Distribution Transformers Energy Conservation Standards.. CA: 2007. International Energy Agency.” C. Press Release. CA. Group II Load Management Studies. Market Progress Evaluation Report. “Wal-Mart Continues to Change the Retail World—One CFL at a Time. LLC. September 14. France: 2005. “Demand-side Planning. 2007. October 12. Paris. Final Rule. 4. World Energy Outlook 2005: Middle East and North Africa Insights. Phase I Report: June 2003-Novembr 2005. Demand-side Management: Volumes 1-5.S. Samotyj. 2003. Overview and .
D. Boston Pacific Company. Electricity Demand (Boulder. Inc. prepared for Electric Power Research Institute. EPRI RDS 94 (RP 1613). July 1982. 27-28 and 38-39. Inc. Cost/Benefits Analysis of Demand-side Planning Alternatives. September 1986. Cambridge Systematics. Washington. March 1984. Report No. Published by the Electric Power Research Institute. Gupta.” EPRI Journal.. August 1983. the COMMEND Planning System: National and Regional Data and Analysis.. Published by the Electric Power Research Institute.S. EPRI EM-4486. C. November 1983. Berkeley. Report No. Gellings and D. Electric Utility Rate Design Study.R. 1981). Decision Focus. October 1983. The Marketing Plan (New York: The Conference Board.C. University of California. Published by the Electric Power Research Institute.292 The Smart Grid: Enabling Energy Efficiency and Demand Response Reports from the Four Project Groups. Number 8. Limaye. “Cooling Commercial Buildings with Off-Peak Power. “Market Planning for Electric Utilities. David C. and J. Faruqui. Center for the Built Environment. EA-2512 (RP 1211-2).W. Various DDC system manufacturers have incorporated access via the Internet through an IP address specific to the DDC system. routers and hubs. Customer’s Attitudes and Customers’ Response to Load Management. Alliance to Save Energy. Residential End-Use Energy Planning System (REEPS).” Report to CEC Public Interest Energy Research (PIER) Program. Wharton. Transmission Control Protocol/Internet Protocol (TCP/IP) as developed by the Advance Research Projects Agency (ARPA) and may be used over Ethernet networks and the Internet. “Ten Propositions in Modeling Industrial Electricity Demand. Office Productivity Tools for the Information Economy: Possible Effects on Electricity Consumption. Hopkins. and Economic Analyses. Inc. Octo- . CO.” Paper Presented at Energy Technology Conference.” in Adela Bolet (ed. April 4. Volume 8. Use of this communications industry standard allows DDC network configurations consisting of off-the-shelf communication devices such as bridges. P. Legal. December 1983. Pp. 1985.. Published by Electric Power Research Institute. Utility Promotion of Investment in Energy Efficiency: Engineering. Report No.C. Decision Focus.) Forecasting U. A. EPRI SIA82-419-6. Demand-side Planning Cost/Benefit Analysis. Commend building types. Westview Press)..
Strategic . Decision Focus. Inc. Demand-side Management Vol. EM-3159-SR. May 1982. EBASCO Services. EM2649 (RP 1940-1). Published by the Electric Power Research Institute. EPRI EA/ EM-3597. Inc. Demand-side Planning Cost/Benefit Analysis. forthcoming. EPRI EA/EM-3597. Inc. Energy Management Associates. EPRI EA/EM-3597. 3 Project 2381-4 Final Report. March 1983. Electric Utility Conservation Programs: Assessment of Implementation Experience (RP 2050-11) and 1983 Survey of Utility End-Use Projects (EPRI Report No.. Published by the Electric Power Research Institute. EA-970 (RP 1108). Issues in Implementing a Load Management Program for Direct Load Control. Energy Utilization Systems. EPRI EA 2396 (RP 1485). Published by Electric Power Research Institute.. RP 2547. Report No. Report No. 3: Technology Alternatives and Market Implementation Methods. Opportunities in Thermal Storage R&D. Inc. Pradeep C. EPRI EURDS 94 (RP 1613). November 1982. Inc. Decision Focus.. July 1983. Demand-side Management Vol. EPRI RP2381-5. Vol. March 1979. Demand-side Management Vol. Clark W. 1981 Survey of Utility Load Management Conservation and Solar End-Use Projects. Vol. Electric Power Research Institute. Vol. 4: Commercial Markets and Programs. Published by the Electric Power Research Institute. Inc. Published by the Electric Power Research Institute. Vol. 2: Evaluation of Alternatives. Gellings. EPRI Reports prepared by Synergic Resources Corporation. Demand-side Management Vol.. Gupta. Load Management Strategy Testing Model. Survey of Innovative Rate Structures. EPRI EA/ EM-3597. and Ahmad Faruqui.. EPRI RDS 94 (RP 1613).Appendix 293 ber 1983. Integrated Analysis of Load Shapes and Energy Storage. Report No. 2 Project 2381-4 Final Report. EPRI Project. Report No. Report No.. Decision Focus. EM 3529). Eco-Energy Associates. Consumer Selection of End-Use Devices and Systems. 4 Project 2381-4 Final Report. 1: Overview of Key Issues. 1 Project 2381-4 Final Report. Published by the Electric Power Research Institute. November 1983. EPRI EA-2904 (RP 2050-8).
March 1986. Kuliasha. EPRI Project RP 1956. Department of Energy. 1983. PrenticeHall. Non-residential Buildings Energy Consumption Survey: Characteristics of Commercial Buildings. Inc. Jersey Central Power and Light Company and Todd Davis. The PG and E Energy Expo. 5-4. 1982. Report No. Competitive Strategy (New York Free Press. 1984. Plummer (ed. U. Utility Controlled Customer Side Thermal Energy Storage Tests: Cool Storage. McMenamin and I.S. Lauritis R. Identifying Commercial Industrial Market Segments for Utility Demand-side Programs. Electric Power Research Institute. Methods for Analyzing the Market Penetration of End-Use Technologies: A Guide for Utility Planners. p. ORNL-5795. February 28. “Load Forecasting. Gayle Lloyd. Methods for Analyzing the Market Penetration of End-Use Technologies.” December. Published by Oak Ridge National Laboratory.) Strategic Planning and Management for Electric Utilities. EPRI EA-2702 (RP 2045-2). 1980). October 1982. October 1985. Inc. Berkeley. Residential Response to Time-ofUse Rates. 57. April 1966. Resource Planning Associates. EPRI EA-2008 (RP 1478-1). Inc. EPRI has also recently funded a project on “Identifying Consumer Research Techniques for Electric Utilities” (RP 1537). forthcoming 1984. September 1981. presentation made at the EPRI Seminar on “Planning and Assessment of Load Management. p. published by the Electric Power Research Institute.A.294 The Smart Grid: Enabling Energy Efficiency and Demand Response Implications of Demand-side Planning. February 1983. Rohmund. “Load Management Implementation Issues. College of Engineering. . Synergic Resources Corporation. Linda Finley. Published by the Electric Power Research Institute. Michael Porter. Reference Manual of Data Sources for Load Forecasting.S. EPRI EA-2702 (RP 2045-2). Mathematical Sciences Northwest. New Jersey. Pradeep Gupta. Energy Information Administration. October 1982. A Guide for Utility Planners. Marketing Demand-side Programs to Improve Load Factor. Electricity Use in the Commercial Sector: Insights from EPRI Research.” from the Utility Resource Planning Conference sponsored by the University of California-Berkeley. Electric Power Research Institute Working Paper. J. Published by Electric Power Research Institute.” in James L. Chirtensen Associates.. EA-4267. California..” M.
Appendix 295 Robert M.S. 1979 Nonresidential Buildings. U. Paper presented at Utility Conservation Programs: Planning. Electric Power Research Institute. 1986 Statistical Year Book.S. Analysis. Department of Energy. Report EM-3529-1984 (RP 1940-8). New Orleans. US DL 85-478. 1985). EPRI P-2799-SR. Synergic Resources Corporation. 1985. 1983. Residential Load Forecasting: Integrating End Use and Econometric Methods. 2. April. Edison Electric Institute. Coughlin. 1985. September 13. Department of Labor. U. Conference Proceedings. January 1983.” Meeting Energy Challenges: The Great PG&E Energy Expo. Inc. edited by Craig Smith. 1983—1987 Research and Development Program Plan published by the Electric Power Research Institute. Electric Power Research Institute. Stephen Braithwait. “Understanding Commercial Fuel and Equipment Choice Decisions. 439-447. Southern California Edison Company. State Energy Date Report. Bureau of Labor Statistics. 1985. Energy Consumption Survey Data for COMMEND buildings. Electric Utility Sponsored Conservation Programs: An Assessment of Implementation Mechanisms (forthcoming). RP 2050-11. Todd Davis and Peter Turnbull (New York Pergamon Press. July 1985. EPRI EM-4142. and Implementation. 1983 Survey of Utility End-Use Projects. Survey of Utility Commercial Sector Activities. . November 7. vol. 1981 Conservation and Load Management: Volume II Measurement (1981 Page 2-VIII-I). pp. Synergic Resources Corporation.
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Index A adjustable speed drives 28. 125 272 distribution operations 121 consumer education 189 distribution transformer efficiency consumer interface 165 46 297 . 252 C demand-side evaluation 259 California 182 demand-side management 138. 150 structure to Support a Digidistributed generation 99 tal Society 114 distributed power systems 87 consumer and market research distributed resources 121. 245. 206. 283 data center 99. 124 direct current 93 compact fluorescent lamps 103 direct customer contact 199. 124 advertising and promotion 190. Consortium for Electric Infra124. 40 advanced distribution automation 50. 12 247 cogeneration 235 device-level power system 81 communication 167 direct consumer contact 189 architecture 119. 142. Capgemini 14 139 China 179 demand-side planning 53. 273 architecture 3 automation 126 consumer portal 128 customer acceptance and response 193. 109 bottlenecks 10. 116 DC power delivery 100. 110 building integrated power syssystems 98 tems 84 DC to DC converters 109 building systems 163 demand response 141. 273 alternating current 93. 205. 273 connectivity to consumers 117 direct incentives 192. 144. 97 alternative pricing 190. 202. 111 energy efficiency 229 B DC distribution 93. 126. CO2 emissions 6. 246. 273 conservation voltage reduction 43 distributed energy resources 4. 132. 105. 195 customer education 273 customer satisfaction 198 customer services 121 D data and information 216. 37.
140. 134. 156. 148. 151. 135. 142 EnergyPortSM 155. 146 systems 131. 267 E efficiency in power delivery 43 electric energy savings potential 71 Electricite de France 23 electricity demand 66 electric transportation 5 ElectriNetSM 2 electrotechnologies 238. 162 energy storage 109 entertainment 169 environment 60 European Union 23 F fast simulation and modeling 122 financial impacts 55 finite resources 59 . 171 energy audits 199 energy efficiency 252 improvement rates 69 supply curve 72 energy efficient end-use devices 132 energy efficient technologies 221 energy information systems 143 energy management system 134. 161. 226 ductless residential heat pumps and air conditioners 227 dynamic energy management 131.298 The Smart Grid: Enabling Energy Efficiency and Demand Response flexible AC transmission technologies 11 fully integrated power system 88 G Galvin Electricity Initiative 78 Galvin Initiative 22 General Electric 19 Germany 178 Ghana 177 green grid 12 greenhouse gas emissions 61 grid operations 9 GridWise™ 19 H heat pump water heaters 228 heat rate 27 high-level architecture 122 high-voltage direct current 97 Hydro Quebec 22 hyper-efficient appliances 226 hyper-efficient residential appliances 229 I IBM 16 implementation 212 increasing worldwide demand for energy 58 independent system operators 8 indoor air quality 224 inductive charging 110 information technology 105 integrated energy and communications architecture 120. 143. 133 intelligent network agents 123 intelligent universal transformer 49 Distribution Vision 2010 21 domestic water heating 32. 242 end-use energy efficiency 53.
164 renewable energy 6 S safety 163. 266. 80 configurations 81 phaser measurement units 8 plug-in hybrid electric vehicles 4. 83. 231 and drives 230 multi-resolution modeling 123 N national security 59 new source review 29 N-l 9. 251. 246. 17. 10 nodes of innovation 82. 166 self-healing grid 117. 88 North Africa 185 Norway 175 299 P participatory network 16 peak clipping 252 peak demand reduction 75 perfect power system 78. 113 inverters 100 J Japan 180 L light-emitting diode (LED) street and area lighting 230 lighting 222 load management 246 load shape 140. 5. 8 space conditioning 224 . 269 objectives 255 load shifting 252 local energy network 4 low-carbon central generation 6 M market implementation 189 market operations 121 mechanical system 1 micro-grid system 100 Middle East 185 modern grid strategy 19 monitoring and evaluation 213. 284 motors 37. 265. 127 power flow 114 power plant electricity use 28 power plant lighting 29 power plant space conditioning 32 price-smart 11 process heating 234 program management 210 program planning 210 R rate of efficiency improvement 57 reactive power 114 regional transmission organizations 8 reliability 9. 12 policies and programs 174 polyphase alternating current 96 Portland 183 power delivery system 1 power electronics 100.Index IntelliGridSM 2. 84. 281. 122 self-healing system 11 smart devices 150 smart grid 1.
S. 273 transformer efficiency standards 48 transformer losses 47 transmission and distribution 7 transmission operations 121 U UK SuperGen 21 . peak summer demand reduction potential 73 V valley filling 252 variable frequency drives 101 variable refrigerant flow air conditionings 227 visualizing 10. 116 W Wal-Mart 184 wide-area monitoring systems 8 storage 126 devices 99 supply curve for U. 201.300 The Smart Grid: Enabling Energy Efficiency and Demand Response unified modeling language 122 uninterruptible power systems 104 United Nations Foundation estimates 67 U.S. and enduse electric energy savings 74 switched-mode power supply 101 T thermal energy storage 236 trade ally cooperation 190.
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